The competition was created in 1996 and took up the old format of the Saudi Second Division. The first phase of competition was a group stage with teams divided into geographical locations based on the provinces of Saudi Arabia. The second phase was a knockout round tournament, with the group winners and runners-up taking part.
On 9 October 2020, the Saudi FF announced a new format for the Third Division starting from the 2021–22 season. The competition would consist of 32 teams divided into 4 groups, with the group winners earning promotion to the Saudi Second Division League.[2] Al-Suqoor, now known as Neom, were the first champions of the new format.[3]
During the 2023–24 season, the number of teams participating was increased to 40 teams.[4]
