"The Ministry of Utmost Happiness" will be published by Hamish Hamilton UK and Penguin India, a statement said.
"I am glad to report that the mad souls (even the wicked ones) in 'The Ministry of Utmost Happiness' have found a way into the world, and that I have found my publishers," Roy said.
"To publish this book is both a pleasure and an honour. What an incredible book it is - on multiple levels; one of the finest we have read in recent times," said Simon Prosser, Publishing Director of Hamish Hamilton & Penguin Books UK; and Meru Gokhale, Editor-in-Chief, Literary Publishing of Penguin Random House India.
According to Roy's literary agent David Godwin, "Only Arundhati could have written this novel. Utterly original. It has been 20 years in the making. And well worth the wait.
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