The move is seen as a way of hitting back at accusations that the firm has contributed to rising levels of obesity around the world but it is also a major victory for consumer groups.
Michael F. Jacobson, executive director of the Center for Science in the Public Interest, called the move"a useful step in providing customers more, and more readable, nutrition information".
He said: "It stands apart from some other nutrition initiatives - such as brochures and posters - that McDonald's and other companies have undertaken that were more illusory than useful. And it puts the lie to the fast-food industry's contention that it's impossible to do."
Nutritional information on items such as the Big Mac, which contains 30g of fat, are currently only available in leaflets or on the company's website.
The new labels will display nutrient content in 'a customer-friendly snapshot' that also relates it to daily nutrient recommendations using bar charts and icons, said McDonald's.
The icons will reflect calories, protein, fat, carbohydrates and sodium.
McDonald's said it hoped to have the new packaging in 20,000 of its 30,000 fast food restaurants worldwide by the end of 2006.
The company has been introducing salads and fruit to its menus and earlier this year announced that it was giving its mascot Ronald McDonald a sporty new makeover in a bid to encourage children to take up more active lifestyles.
But critics still deem McDonald's products to be unhealthy and fattening, at a time when obesity levels in many countries are soaring.
Jacobsen added that it would be better if the restaurant provided calorie counts on the menu board so consumers would have the information before they placed their order.
He is also calling for their labels to distinguish saturated and trans fat from total fat, as McDonald's fried foods are high in the dangerous trans fats.
McDonald's is hoping to introduce the new packaging by February next year, in time for the Winter Olympics in Italy.