German-based manufacturer GoalControl is set to provide goal-line technology (GLT) at the 2014 World Cup in Brazil.
GoalControl will be used at this year's Confederations Cup in Brazil and will be used a year later, provided the performance reaches the requirements.
Fifa president Sepp Blatter pushed for technology after Frank Lampard's goal was ruled out in England's 4-1 defeat by Germany in the 2010 World Cup.
British-based Hawk-Eye was one of four firms that had bid for the tender.
Fifa said in a statement: "The final decision was based on criteria relating more specifically to the tournaments in Brazil, including the company's ability to adapt to local conditions and the compatibility of each GLT system."
The Football Association and Premier League are understood to be in talks with the four licensed providers - GoalControl, Hawk-Eye, GoalRef and CAIROS.
A decision could come as early as this month over who will win the contract to provide a system for all 20 Premier League grounds and Wembley.
GoalControl uses 14 high-speed cameras around the pitch as part of its GoalControl-4D system.
The 14 cameras are fixed in elevated positions around each goalmouth, with the ball's position continuously captured in three dimensions - X, Y and Z coordinates - when close to the goal.
All the cameras are linked to the GoalLine system, which removes players, the referee and any other objects when processing the images it receives.
With other elements removed, only the ball remains, with its position precise to a few millimetres in the coordinate system of the pitch, according to the GoalControl website.
If the ball has crossed the goal line, a vibration and optical signal is sent back to the officials' watches within one second.
"The unique features of our system are the outstanding flexibility and accuracy," said Dirk Broichhausen, managing director of GoalControl.
"All current goal posts and white goal nets can be used without any modifications. Additionally, GoalControl-4D can be used with any existing ball."
GoalControl have also reached an agreement with GoalRef to use the same referees watches that GoalRef used in a trial at the Club World Cup in December 2012.
"The watches are the element that connect the goal line technology with the referees, so our intention was to offer a device that international referees have already tested and know from experience the ease of operation and reliability," Broichhausen added.
A Hawk-Eye statement said: "Sport teaches us many lessons, including accepting defeat graciously and having confidence in your ability to bounce back strongly. Hawk-Eye wishes Fifa and the appointed GLT supplier every success."
Uefa president Michel Platini said last month that goal-line technology was too expensive for use in the Champions League.