The BBC Trust should be abolished and regulation of the corporation handed to Ofcom, a review has concluded.
The trust was "flawed" and "fundamental reform" is needed, said Sir David Clementi, who led the review into how the BBC is governed.
Oversight of the corporation should be "passed wholly to Ofcom", according to the report, which was commissioned by the Government in light of a series of scandals to hit the BBC in recent years.
They included its handling of the Jimmy Savile abuse allegations, Lord McAlpine's libel claim over false child abuse allegations, and the furore over Jonathan Ross and Russell Brand's 2008 phone call to actor Andrew Sachs.
In response to the report, BBC Trust chairman Rona Fairhead said: "Sir David Clementi proposes a strong BBC board and a strong external regulator - a change we have argued for.
"It will be important to get the details right, and we now want to work with the Government to ensure roles are clear, the structure is effective and the BBC's independence protected."
Sir David, former deputy governor of the Bank of England, was appointed by Culture Secretary John Whittingdale last September to lead the review ahead of the renewal of the BBC's Royal Charter, which runs out at the end of this year.
The review recommends the BBC should be governed by a board with a majority of non-executive directors which holds "primary responsibility for the interests of the licence fee- payers".
The charter should place a duty on the BBC to consult with the public and the corporation should handle complaints first, with Ofcom dealing with appeals on editorial issues, the report states.
Ofcom should issue the BBC with an "operating framework" which sets out the obligations placed on the organisation, including its broadcasting content and distribution obligations, it adds.