The decision is a major blow to the rival faction led by party founder Mulayam Singh Yadav who had been desperate to hold on to the symbol which he picked long ago.
The announcement was first made by Samajwadi Party leader Ram Gopal Yadav, who urged the people of Uttar Pradesh to vote Akhilesh Yadav back to power in the coming assembly election.
"This is a just decision," a beaming Ram Gopal Yadav, who is also a Rajya Sabha member, told the media. "The Election Commission will get the blessings of crores of people in Uttar Pradesh."
An Election Commission official confirmed the development, saying: "The group led by Akhilesh Yadav is the Samajwadi Party and is entitled to use the 'cycle' symbol."