The Medicines and Healthcare products Regulatory Agency (MHRA) said e-cigarette manufacturers can now submit products to go through the same regulatory approvals process as other medicines.
This could mean that England becomes the first country in the world to prescribe e-cigarettes as a medical product but it requires approval from the National Institute for Health and Care Excellence (Nice).
Health Secretary Sajid Javid said: "Opening the door to a licensed e-cigarette prescribed on the NHS has the potential to tackle the stark disparities in smoking rates across the country, helping people stop smoking wherever they live and whatever their background."
Almost 64,000 people died from smoking in England in 2019 while there are still around 6.1 million smokers in the nation, according to figures given by the Department for Health.
Professor Nick Hopkinson, a consultant physician at the Royal Brompton and medical director at Asthma UK and the British Lung Foundation, said: "There is already good evidence that commercially available e-cigarettes enable people to switch away from smoking to a much safer alternative.
"However, the development of medicinally licensed e-cigarettes would be a really important step forward, providing patients and healthcare professionals with an additional tool to break dependence on smoking, backed up by the reassurance that comes from a rigorous authorisation process."
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