Putting an end to the simmering controversy over the title, Kejriwal tweeted: "Anna is too dear to us. I have deepest respects for him. After launch of our party on November 26, we will not use the IAC name."
Kejriwal's move is aimed at keeping the channel with his one-time mentor, Hazare, open for future reconciliation.
Earlier in the day, Kejriwal said he considers Hazare as his "guru" and talks to him every day.
Hazare's colleague Kiran Bedi said their new team will collect donations in the name of IAC.
A statement issued by Hazare's group said the new committee announced by him will reinvigorate the IAC movement.