ECB bans transgender women from women's professional cricket
The updated policy mirrors last year's decision by the International Cricket Council, which banned anyone who has gone through male puberty from taking part in women's international games.
Transgender participation has become a hot-button issue as different sports try to balance inclusivity with ensuring fair competition.
International governing bodies in a number of other sports including cycling, swimming and athletics have also effectively banned transgender competitors.
The ECB said it had consulted "relevant science and medical evidence" and considered "fairness, safety and inclusion".
However, it confirmed tier three of the new domestic system, which is set to launch next year, plus recreational cricket, will welcome individuals in the gender with which they identify.
That comes with the caveat of an already-established "disparity policy", which covers anyone with an appreciable strength, stamina and/or physique advantage that could cause a safety or fairness issue.
A statement from the ECB, which will roll out the new policy in time for the 2025 domestic season, said: "The ECB recognises that transgender participation is a complex area, with many strongly held views, and it is impossible to balance all the considerations.
"We want everyone to feel included and welcome in our sport, and believe the position reached strikes an appropriate balance by ensuring fairness in the elite game while ensuring inclusivity at a recreational level, with specific safeguards in place to manage disparities and ensure safety."
The ECB's existing policy had dictated that anyone identifying as female could compete in professional club and England pathway teams, so long as they had written clearance.