Officials at the U.S. software giant said they had accepted the European Union's offer to call the European version of Windows sold without Media Player "Windows XP Home Edition N" — with "N" standing for "not with media player."
Microsoft's "XP Professional Edition" will also include the "N" for versions sold without the media player.
Microsoft's top lawyer in Europe, Horacio Gutierrez, told The Associated Press his company had notified the EU head office of its decision to accept their name offer.
He added that the company had "some misgivings" about the new name, but decided in the end to cooperate.
"We fear it may cause confusion for consumers buying the product, but we will adopt the commission's name in order to move forward and accelerate the pace of the implementation process."
There was no immediate comment from the European Commission.
The agreement is part of talks between the EU and Microsoft to implement an EU fine against Microsoft last year, totaling a record euro497 million (US$665 million) after the EU ruled the company abusively wielded its Windows software monopoly to lock competitors out of the market.