Australia were unable to defend the Champions Trophy last year
The 2009 ICC Champions Trophy in South Africa - starting in September - will offer £2.4m ($4m) in total prize money.
The International Cricket Council confirmed the increase from £700,000 ($1.15m) from the previous tournaments in 2004 and 2006.
Pakistan was set to host the one-day competition in 2008 but the event was switched to South Africa because of security concerns.
The eight-team tournament will run from 22 September to 5 October.
The Wanderers in Johannesburg and Centurion Park stadiums will host the 14 matches in 15 days as holders Australia defend their title.
England, India, New Zealand, Pakistan, South Africa, Sri Lanka and West Indies make up the other countries involved as the top-ranked teams battle it out.
ICC chief executive Haroon Lorgat said: "The significant increase in prize money is just the first of a series of innovations which will mark out the ICC Champions Trophy as a high-value tournament for players, spectators and our members.
"The new format means eight teams, 15 matches and one prize and as the only global multi-team 50-over event between ICC Cricket World Cups. It will be an invaluable barometer of form as well as a great advertisement for our great sport."