Russia and Qatar have won the rights to host the 2018 and 2022 World Cups respectively as announced by FIFA on Thursday in Zurich.
The result means England's roller-coaster campaign to host the 2018 World Cup ended in bitter and controversial defeat.
FIFA's executive committee voted to give the 2018 tournament to Russia ahead of England, Spain/Portugal and Holland/Belgium.
England looked to have suffered from a backlash against corruption investigations into FIFA members by BBC Panorama and the Sunday Times over the last two months.
These investigations were criticised both by Russian prime minister Vladimir Putin yesterday and Spain/Portugal bid president Angel Villar Llona in his presentation to fellow FIFA members on Thursday.
Villar Llona: said: "I love FIFA dearly but those I love the most are my colleagues in the ExCo.
"Recently we have been criticised by many media outlets. Unfortunately for them FIFA is a clean institution.
"FIFA values honesty, FIFA works for football and for the world and all my colleagues here present are all honest, hard-working football people and the people not here are also honest and hard-working.
"You have already heard enough slander in the media, the bidding process is clean regardless of what they say."
Six FIFA officials were last month suspended following a Sunday Times investigations and on Monday BBC Panorama claimed three other FIFA members had taken bribes in the 1990s.
The defeat comes despite an impressive presentation by England that was described by FIFA president Sepp Blatter as "excellent and remarkable".
Prince William, David Cameron and David Beckham all sparkled but were all outshone by 27-year-old Eddie Afekafe, who works on Manchester City's community programmes.
Afekafe explained how football had changed his life before introducing the prince to the 22 FIFA executive committee members.
William then said: "I love football, we English love football and it would be an honour for us to host the World Cup."
Beckham had made an emotional pitch, drawing on memories of his grandad Joe who died a year ago today, just before he took part in the South African World Cup draw in Cape Town.
Beckham said: "My life in football began with my grandad Joe. A year ago today my grandad died, the day before the draw. Now I want to do something that will make my grandad proud.
"Now I want to do more. Our dream is to stage a World Cup that benefits billions, that makes you, your grandchildren and everyone in football truly proud."
Earlier, Cameron had highlighted the Government's support and a commercial success for the tournament, and said England's bid would deliver for players, fans and FIFA.
Handed the World Cup by Blatter, Russian deputy prime minister Igor Shuvalov celebrated, saying: "You have entrusted us with the Fifa World Cup for 2018 and I can promise, we all can promise, you will never regret it.
"Let us make history together."
Major of London Boris Johnson told reporters that, according to information he had received about the voting, England had been knocked out in the first round.
Meanwhile, Qatar will host the World Cup finals for the first time after FIFA awarded them the rights to the 2022 tournament.
Qatar beat bids from Australia, the United States and 2002 World Cup co-hosts Japan and South Korea.
The FIFA executive committees' decision comes as a slight surprise after the US and Australia bids had been highly-fancied.
Qatar's staging of the tournament had come in for some criticism because of the weather in the country during June and July - when temperatures can rise as high as 50 degrees Celsius - while the close proximity of the stadiums had also raised some questions.
Qatar's success in Thursday's vote comes just over a month before they are schedule to host the Asian Cup finals.
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