Catholic News Agency reports the ICO Conference made the decision by a two-thirds majority at an extraordinary general assembly in Rome last week.
The dissolution of the conference follows a one year process of multilateral dialogue.
The conference began in 1927, with many member institutions being of French origin. The membership has remained largely static for years, with few new organisations joining.
Many of its older organisations have also become dormant, CNA says.
The conference's disbanding aims to allow the further progress of the new Catholic NGO Forum, which was initiated by the Vatican Secretariat of State.
The new Forum held its first meeting in Rome in November 2007 and includes an additional 100 Catholic-inspired NGOs.
A press release from the Conference of the International Catholic Organisations said the action helps form a more effective network to respond to global challenges within the framework of the United Nations and other intergovernmental authorities.
According to the press release, the move will allow public and private international Catholic associations of the lay faithful, as well as religious congregations, to organise around the same objectives and to engage in "common witness to evangelical values and those conveyed by the social teaching of the Church."
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