The decision was taken in the 26th OCA General Assembly held in Kuwait last month, an SRFI release said.
Till last year, Squash was played as individual event in Asian Games.
Welcoming the decision, SRFI president N Ramachandran said, ''This is a great news for all the squash aficionados spread across the country. I thank the Olympic Council of Asia for this encouraging step.'' According to national coach Cyrus Poncha, ''This is an opportunity for India to prove in the international scene.'' India bagged its first medal in Squash in the Asian Games in Doha when Saurav Ghoshal won a bronze in individual event.