Nasrullaganj in Sehore district has been renamed and will now be known as Bhairunda, an official notification said.
On Sunday, the Revenue Department issued its notification after the permission of the Union Home Ministry.
In a similar move, the central government last month approved the renaming of Maharashtra's Aurangabad and Osmanabad districts as Chhatrapati Sambhaji Nagar and Dharashiv, respectively.
The Ministry of Home Affairs (MHA) approved the proposal and said the central government had "no objection" to changing the names of both districts of Maharashtra.
Maharashtra Deputy Chief Minister Devendra Fadnavis welcomed the decision and said that the state government under the leadership of Chief Minister Eknath Shinde has "demonstrated" its resolve.
"'Chhatrapati Sambhajinagar' of Aurangabad, 'Dharashiv' of Osmanabad! The central government approves the decision of the state government! Hon. Prime Minister Narendra Modiji and Union Minister Hon. Many thanks to Amitbhai Shah! The government under the leadership of Chief Minister Eknath Shinde ji has 'demonstrated'...!" he said in a tweet.
Fadnavis also attached the letter of approval from the Ministry of Home Affairs (MHA). (ANI)