Founded as an expansion team in 2006, the Force has struggled to gain a foothold on and off the pitch in a part of Australia far removed from rugby union's eastern heartland.
Under the deal, the players and professional staff of the Force will become ARU employees and current chief executive Mark Sinderberry will continue in his role.
"Ultimately the alliance aims to deliver financial sustainability and improved high performance outcomes for the Western Force," ARU chief executive Bill Pulver.
The Force have managed to accumulate a winning record in just two of their 11 seasons and currently sit last in the Australasian group with two wins from 12 matches.
(Reporting by Nick Mulvenney; Editing by John O'Brien)
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