Dalai Lama makes announcement over whether he will have a successor, as Buddhists around the world fear an end to the 600-year institution
It is a landmark decision for Tibetans, many of whom had feared a future without a leader.
Supporters around the world who see the Dalai Lama as a symbol of non-violence, compassion and the enduring struggle for Tibetan cultural identity under Chinese rule will also be relieved at the decision.
According to Tibetans, Tenzin Gyatso is the 14th reincarnation of the Dalai Lama.
The Dalai Lama is lauded by his followers for his tireless campaign for greater autonomy for Tibet, a vast high-altitude plateau in China about the size of South Africa.
He and thousands of other Tibetans have lived in exile in India since Chinese troops crushed an uprising in the Tibetan capital Lhasa in 1959.
The charismatic Nobel Peace Prize-winning Buddhist had previously said the institution of Dalai Lama would continue only if there was popular demand.
He said Wednesday he had received multiple appeals over the past 14 years from Tibetan diaspora in exile, Buddhists from across the Himalayan region, Mongolia and parts of Russia and China, 'earnestly requesting that the institution of the Dalai Lama continue'.
'In particular, I have received messages through various channels from Tibetans in Tibet making the same appeal,' he said in a video broadcast at the start of a meeting of religious leaders in the Indian Himalayan town where he has lived for decades.
'In accordance with all these requests, I am affirming that the institution of the Dalai Lama will continue,' he added, according to an official translation.
His advanced age had also sparked concern over the future of Tibetan leadership and the delicate question of his succession.
The announcement was made ahead of his 90th birthday on July 6.
While China condemns him as a rebel and separatist, the internationally recognised Dalai Lama describes himself as a 'simple Buddhist monk'.
Many exiled Tibetans fear China will name its own successor to bolster control over a territory it poured troops into in 1950.
But the Dalai Lama said Wednesday that responsibility for identifying the 15th Dalai Lama 'will rest exclusively' with the India-based Gaden Phodrang Trust, the office of the Dalai Lama.
'I hereby reiterate that the Gaden Phodrang Trust has sole authority to recognise the future reincarnation; no one else has any such authority to interfere in this matter,' he added.
Chemi Lhamo, 30, a Tibetan activist in exile, said she was convinced the continuation of the role of Dalai Lama would serve the cause of a Tibetans.
'There isn't a doubt that the Dalai Lama institution will also continue to serve the benefit of humanity,' Lhamo said, adding the announcement sent a message to Beijing to 'unequivocally reject' any role in identifying the future leader.
The Dalai Lama handed over political authority in 2011 to an exiled government chosen democratically by 130,000 Tibetans globally.
At the same time, he warned that the future of his spiritual post faced an 'obvious risk of vested political interests misusing the reincarnation system'.
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