The university is the first in the country to decide not to levy the full £3,000 in annual fees to be introduced in 2006.
Instead, students will have to pay about £2,000 a year, whatever course they study.
The move has been described as "low charging, high impact" in reference to the success of Super League champions Leeds Rhinos.
Governors of the university gave the go-ahead to the reduced fees at a meeting on Tuesday night, following a recommendation from the vice chancellor, Professor Simon Lee.
Chair of the Board, Nimble Thompson, said the university, which has more than 41,000 students, was committed to offering higher education to learners from all backgrounds.
"We are proud to be the first university to offer the lower fee and believe it reinforces everything that the university stands for – high quality education but at an affordable price."
Government plans to introduce the top fees caused an outcry when they were revealed last year.
Leeds East MP George Mudie labelled the proposals a "disgrace" as he fronted a rebel group which narrowly failed to block the plans.
It has been widely expected that most universities will charge the full £3,000, driving students further into debt. Those wishing to charge less must apply to the independent Office for Fair Access.
Dave Hayes, president of the Leeds Met Students' Union and a member of the board of governors, said students had been keen for the university to pursue a low-fee option.
Fears that a low fee would mean low quality, would be unfounded, he said.
"Leeds Met Students' Union believes education is a universal right and should be free. We are faced with a hard reality but continue to believe that students should have as few barriers as possible to education, and that the benefits of education cannot just be measured in monetary terms.
"We believe that pricing people out of higher education would devalue our institution by not allowing such a diverse range of students to continue their education.
"Student finance is a major problem and by continuing with this policy our government is consigning future generations to years of debt. The Students' Union is pleased to be working alongside an institution that is listening to the views of its students on such important issues.
Professor Lee said he was grateful for the support of the governors.
"As an institution we have the confidence to know that we can support widening participation as well as delivering the highest quality."
ian.rosser@ypn.co.uk