According to Spotify, the British musician's hit has been streamed more than 1.34 billion times on its platform.
The record was previously held by rapper Drake and his famous track "One Dance" which garnered 1.31 billion streams.
Spotify reports that the singer of "Shape of You" also holds other records on the platform: notably he tops the list of the world's most streamed artists with more than 40 million plays per month. He is also Spotify's second most streamed artist of all time (second only to Drake) with more than ten billion streams.
"Divide" or "÷", which features "Shape of You" is Ed Sheeran's third album.