Rectory Wood and Field was given the title by Church Stretton Town Council after a proposal supported by the Shropshire Wildlife Trust, Shropshire Council and Natural England.
The move recognises the value of the 25-acre site to both wildlife and residents and will protect and enhance the area’s natural heritage, while maintaining its use as a site for community events and enjoyment.
Rectory Wood and field was voted the ‘least stressful spot in England’ in a survey run by the Independent newspaper in 2009.
It is so named, as it was formerly part of the grounds of the old rectory, and it is believed that the design of the wood was influenced by Capability Brown.
Janet Martin of the Rectory Wood and Field and Coppice Leasowes Interest Group said: "This is the culmination of four years of work led by the Rectory Wood and Field and Coppice Leasowes Interest Group in conjunction with the Shropshire Wildlife Trust.
"We’re looking forward to working with the community and the town council to manage it as a resource for recreation, relaxation and education whilst supporting and enhancing its wildlife and habitats."