Denali translates as High One or Great One and is used widely by locals.
The 20,237ft (6,168m) peak was named by a gold prospector in 1896 after he heard that William McKinley had been nominated to become the US president.
US President Barack Obama announced the change ahead of a three-day visit to Alaska to highlight climate change.
“With our own sense of reverence for this place, we are officially renaming the mountain Denali in recognition of the traditions of Alaska Natives and the strong support of the people of Alaska,” US Interior Secretary Sally Jewell said in a statement announcing the change.
The statement went on to note that McKinley had never set foot in Alaska.
Alaska has been attempting to change the name to Denali for decades. However, its attempts to change it at a federal level have been blocked by Ohio, William McKinley’s home state.
It is unclear if Ohio lawmakers will attempt to stop this name change.
McKinley was the 25th president of the United States. He was assassinated early in his second term in 1901.
The huge rock formation in central Australia was for many years widely known as Ayers Rock, a name coined by a European explorer. However, it was originally called Uluru by local Aboriginal people. In 1995, it became Ayers Rock/Uluru, and then in 2002 this was reversed to Uluru/Ayers Rock.
In China, the Southern Sky Column in Zhangjiajie was changed to the Avatar Hallelujah Mountain after it provided inspiration for the landscape in the best-selling Avatar film.
In 1950, the town of Hot Springs in New Mexico changed its name to Truth or Consequences. The change was inspired by a competition after a popular radio show promised to broadcast from the first town to change its name to that of the show.