The bill creating the Olympic body was approved by a 46-13 vote.
The same bill was approved last week by the lower house Chamber of Deputies.
As revealed on insidethegames last month, Henrique Meirelles, the former President of Brazil's Central Bank, is set to be put in charge of Autoridade Pública Olímpica (PDB) - Olympics Public Authority.
The PDB was the idea of former President Luiz Inacio Lula da Silva and is modelled on the Olympic Delivery Authority (ODA) set-up by London after it won its bid to host the 2012 Olympics and Paralympics.
When it is fully up and running it is expected to employ up to 500 people.
Representatives from the federal, state and city Governments will make up the agency, which is expected to have a budget of around 30 billion reais (£11 billion/$18 billion).
The agency, whose creation was agreed upon with the International Olympic Committee, will be responsible for coordinating investments, mostly in infrastructure, planned for the Olympic Games that will take place in Rio for 2016.
February 2011: Former Central Bank President set to head Rio 2016 agency