Current owner John Henry had spearheaded the move, telling the Boston Herald a year ago that he was "haunted" by some of Yawkey's views and saying the time had come to remove Yawkey's name from the street.
The street was named after former Red Sox owner Tom Yawkey after he died in 1977, but allegations of racism against Yawkey led to questions over the appropriateness of the name.
Boston's Public Improvement Commission unanimously voted Thursday to change the name of the iconic Yawkey Way outside of Fenway Park to Jersey Street.More news: T20 2018: Hyderabad beat Punjab by 13 runs
The name brought significant opposition from some community members and the Yawkey Foundations, which were set up by Tom Yakwey's wife Jean and have donated more than $450 million to charities over several deacdes.
"Today's vote is an important step in our ongoing effort to make Fenway Park a place where everyone feels welcome", the Red Sox said in the statement. Yawkey ran the Red Sox during integration, when Boston famously became the last team to field a black player - 12 years after Jackie Robinson broke the barrier.
The Yawkey Way Foundation opposed the name change saying it would undermine the good the Yawkey family has done for the city.More news: Melania Trump's head-turning white hat steals the show
"This a sad day for all of us at the Foundations".
Massachusetts Rep. Russell Holmes, who spoke in favor of the petition at the hearing and was the only person to testify Thursday, said he believes the City's decision to rename Yawkey Way was a courageous demonstration of progress in a time of critical change on behalf of the Red Sox and Mayor Martin Walsh. "This is not the answer to that".
The city renamed a stretch of the road David Ortiz Drive last summer in honor of the retired Red Sox designated hitter.More news: Under 16? Sorry, you're now banned from WhatsApp in Europe