An independent adviser has been appointed by the Government to propose a definition of Islamophobia.
Imam Qari Asim, deputy chairman of the Anti-Muslim Hatred Working Group, will carry out the task, Communities Secretary James Brokenshire said.
The Cabinet minister said: "The Government is wholeheartedly committed to ensuring that Muslims are not targeted for hatred, persecution or discrimination.
"Imam Asim's appointment marks a further step in helping us to achieve that goal and ensures that we develop an effective definition of Islamophobia which commands widespread support."
Mr Asim said: "To tackle the alarming rise in anti-Muslim sentiment, it is imperative that Islamophobia is defined.
"I am deeply committed to working across Muslim communities and with relevant stakeholders to formulate a legally robust, comprehensive and workable definition of Islamophobia.
"I am honoured to be entrusted with this role, which will have a far-reaching impact in protecting British Muslims and tackling anti-Muslim hatred."
A spokesman for the Ministry of Housing, Communities and Local Government (MHCLG) said: "The Government agrees there needs to be a formal definition of Islamophobia to help strengthen our efforts against anti-Muslim hatred."
It is understood the definition would not be legally binding and would not be allowed to conflict with equalities legislation.
The Government rejected a definition of Islamophobia put forward by the All-Party Parliamentary Group on British Muslims earlier this year.
Incoming prime minister Boris Johnson agreed with other then-Tory leadership contenders to hold an inquiry into allegations of Islamophobia in the Conservative Party during a live TV debate during the campaign, but critics have accused him of watering down the pledge afterwards.
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