The Professional Squash Association (PSA) and World Squash Federation (WSF) have signed a Memorandum of Understanding (MoU) that will see the two bodies "work towards achieving a joint vision for the future of squash on a global scale".
Following a series of meetings between the International Federation and the professional arm of the sport, both organisations have agreed to tackle the sport's future in a "united and cohesive manner".
The MoU was agreed in principle in January but has now been formally signed.
Central to the partnership will be the development of a global strategy and securing a place on the Olympic Games programme.
Maintaining squash's presence on other international multi-sport games programmes as well as growing participation levels around the world is also of paramount importance.
"We are delighted to have reached an agreement with the PSA which we have now signed, that will see both organisations work side-by-side throughout the coming years to help squash achieve greater visibility and profile around the world," said WSF President Jacques Fontaine.
"This was a key objective for me since my election as WSF President last November.
"It is vital for the future of the sport that the governing body of the professional game and the International Federation representing the nations and their players, coaches and referees work in unison towards joint objectives that will ultimately help ensure squash continues to expand its global profile.
"The ability to plan for our future together, developing clear roles and responsibilities for the PSA, WSF and other key stakeholders within the sport, is an exciting moment for squash and we look forward to a very bright future working together."
Fontaine told insidethegames in July that he is "reasonably confident" his organisation's bid to get onto the 2024 Olympic Games programme will be successful.
The sport was one of three nominated events to not be recommended by Tokyo 2020’s Additional Events Programme Panel, along with bowling and wushu.
Baseball and softball, karate, skateboarding, sport climbing and surfing were added to the Games schedule in the Japanese capital by the International Olympic Committee.
It followed previous failures by the WSF to be added to the programme for both London 2012 and Rio 2016.
"Our ambition, aligned with that of the WSF, is to create a more stable and successful platform from which to market squash around the world," added PSA chief executive, Alex Gough.
"Creating a unified refereeing structure, expanding squash's commercial profile and improving working relationships with all stakeholders are key to the future success of squash and we are pleased to begin a new working relationship with the WSF.
"We have been hugely encouraged in all our conversations with the WSF and are excited to begin a new era of greater cohesion."