The newly elected leader reports that Saudi Arabia has agreed to stop sending money to a list of extremist groups drawn up by France.
The head of the Muslim World League Mohammed al-Issa said: “We must wipe out this extremist thinking through the work we do.
“We need to annihilate religious severity and extremism which is the entry point to terrorism.”
The Gulf kingdom currently backs groups overseen by the Muslim World League which has been dogged by accusations of spreading hardline Wahhabi Islam.
Now, Prince bin Salman wants to promote a modern tolerant interpretation of Islam

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Macron said: “He never did it publicly, but when I went to Riyadh (this month), he made a commitment, such that we could give him a list and he would cut the financing.
“I believe him, but I will follow up. Trust is built on results.”
The French President is also seeking commitments from the leaders of Qatar, Iran and Turkey as he seeks to deliver a hammer blow to Islamist groups.
Crown Prince Mohammed bin Salman has set out on a campaign to modernise Saudi Arabia and change its image to the world.
He has already cut restrictions lifting rules against public concerts and revealing plans to ditch the outrageous ban on women driving next year.
Macron is set to travel to Qatar on December 7 which is currently enduring a boycott from its Arab neighbours over alleged ties to extremists and its close relationship with Iran.
He also plans to visit Tehran and discuss their missile programme and campaign or regional destabilisation.
News of the plans comes after the Crown Prince vowed to “wipe terrorists from the face of the earth”.
He called for a co-ordinated response to defeat the evil ISIS terror group.
Speaking at a summit of defence ministers from across 41 majority-Muslim countries he spoke of a need for a “pan-Islamic united front” against terrorism.
He said: “In past years, terrorism has been functioning in all of our countries… with no coordination among national authorities.
“That ends today, with this alliance.”