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Khan, 62, a billionaire car-parts entrepreneur, is the sixth American owner of a Premier League club.
Fulham remained with Fayed for sixteen years and under his patronage Fulham rose from the third tier to the top flight and into Europe.
"It has been a pleasure and privilege to be chairman of Fulham football club for 16 memorable years," said a parting Fayed.
“My time of serving as the custodian of Fulham Football Club would one day come to an end, and I feel that time has now arrived,” Mohamed Al Fayed said. “The time is right because I have found a very good man in Shahid Khan to accept the responsibility and privilege that I have enjoyed at Fulham since 1997. Fulham will be in very good hands with Shahid, whose success in business and passion for sport is very evident. I ask everyone who loves Fulham and our Craven Cottage home to welcome Shahid as he begins his journey as the next guardian of Fulham Football Club.”
The number 16 is common to both Fayed and Shahid Khan: Fayed ran Fulham for 16 years, and Shahid Khan moved from Pakistan to USA at the age of 16.
"My priority is to ensure the club and Craven Cottage each have a viable and sustainable Premier League future that fans of present and future generations can be proud of," said Mr Khan.
"My priority is to ensure the club and Craven Cottage each have a viable and sustainable Premier League future that fans of present and future generations can be proud of," said Mr Khan.
Read more about it at: BBC Sport/Football
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