The Intelligence Secretariat will be replaced with a new federal agency that will be accountable to Congress.
The proposal was drafted last month by President Cristina Fernandez de Kirchner, following the death of special prosecutor Alberto Nisman.
She accused a rogue agent of feeding misleading information to Mr Nisman, who was investigating the government.
The lower house of Congress voted 131 to 71 in favour of the bill. It had already been passed by the Senate.
Marathon session
During a six-hour debate, opposition lawmakers repeatedly expressed their discontent with the fact that, under the new law, oversight of all wiretaps will be moved from the intelligence services to the general attorney's office.
They said they felt uneasy about the close ties between the government and the current general attorney.
They also said they were worried about the role army chief Cesar Milani would play in intelligence gathering under the new law.
The new agency is expected to be set up within 90 days of the bill being signed into law by Ms Fernandez.
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