Club chief executive Alan Whiteley said in a statement seen Thursday that the "revolutionary move" to switch jersey colour was decided in discussions with the owners, who have pledged to pump in more money.
Vincent Tan, a Malaysian tycoon of Chinese origin, had been considering the change because red is "luckier" as well as the Welsh national side's colour, until fans' "vociferous opposition" saw the plans temporarily halted.
But on their website, the club said their primary home colour had been changed to red, while the team would retain blue as an away option. A third kit is to be revealed later.
The statement did not specify how much Cardiff's backers Tan and chairman Chan Tien Ghee would invest, but said the money stood to resolve the club's long-standing debt problems.
"As directors -- and as fans in our own right -- we recognise that there is a history and commitment that goes with supporting Cardiff City," said Whiteley.
"At the same time, we also have to be prepared to be realistic and progressive... By securing this investment (from the Malaysian investors) we can safeguard the immediate and long-term future of this club," he said.
The club added: "The colour red is widely recognised as being synonymous with Welsh culture and heritage.
"The colour also holds strong spiritual significance in Asia, where it is seen as a symbol of prosperity, power and good fortune," it said, adding the change of hue was expected to help build Cardiff's brand out east.
As part of the changes, a new badge will also incorporate the "proud symbol" of the Welsh dragon, Chan said in the statement.
There is a dragon on the Welsh national flag and in Chinese culture it is considered a symbol of power.
"I know and understand that there have been reservations in certain quarters over the changes accompanying the investment, but sincerely hope that all of our loyal fans will come to accept the changes," said Chan.
Manager Malky Mackay said the owners' backing would let Cardiff "look forward to the future with confidence and excitement" and work toward the goal of reaching the Premiership.
Cardiff saw their hopes of promotion to the Premier League dashed by West Ham last month in their play-off semi-final. It was the Bluebirds' third consecutive play-off failure.
The club are planning a new training ground and facilities, and are considering eventually expanding their stadium, as well as strengthening the squad, the statement said.