Agnosticism, atheism, humanism and secularism or incorporated into teaching, the Commission on Religious Education document recommends.
The body - which comprises 14 top academics, advisers and teachers - warns RE is not good enough in helping youngsters engage with different beliefs.
Chair, the Dean of Westminster Very Rev Dr John Hall said: "Life in Britain, indeed life in our world, is very different from life in the 1970s when religious education began to include other world religions and beliefs besides Christianity.
"At present, the quality of religious education in too many schools is inadequate in enabling pupils to engage deeply with the worldviews they will encounter.
"Many structural changes in education in the past 20 years have unintentionally undermined the integrity of RE in the school curriculum.
"The commission is proposing a fresh start for the subject with a vision for the teaching of Religion and Worldviews in every school."
Following a two year consultation, the Commission proposes a new National Entitlement setting out a minimum level of teaching students in all schools can expect.
Rev Stephen Terry from the Accord Coalition for Inclusive Education said the Commission had shown insight to recognise Religious Education must be updated.
He told Premier: "Religious Education is governed by structures and systems which are way out of date...
"Some of the legislation goes back 75 years. Obviously, society has changed a lot since then."
The Commission also recommends that all pupils leaving secondary school have the option of studying Religion and Worldviews in Further Education.
Rev Terry said the recommendations would not equate to Christianity being marginalised.
He said: "Christianity will be given an equal place.
"Obviously, those who espouse the Christian faith would like due prominence given to their particular faith but then so would Muslims, Sikhs, Hindus, humanists and atheists as well."
The academics, advisers and teachers also urged the Department for Education to review the right to withdraw from lessons.
Since 1870, parents have been allowed to withhold their children from some or all of the RE curriculum.
The Church of England's Chief Education Officer, Nigel Genders, commented: "Today, most people's experience of religion and belief is national and global, so we support the move away from a local determination of the subject.
"We believe this will help pupils make sense of religion and belief as it is lived today and this proposed change is educationally valid and would bring RE into line with all other curriculum subjects."
Click here to listen to Premier's Alex Williams speaking with Rev Stephen Terry from the Accord Coalition for Inclusive Education:
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