'Viva Forever!', which was written by Jennifer Saunders, recently announced that it would close after poor ticket sales and bad reviews, reported BBC online.
'Dirty Dancing', which is currently touring the UK, will open on July 13.
The musical, based on the hit 1987 film, previously played in London at the Aldwych Theatre from 2006 to 2011.
'Viva Forever!' tells the story of a girl band who pursue stardom on a reality TV series and will close on June 29.
'Dirty Dancing' producers Karl Sydow and Amber Jacobsen said they were delighted that the show would be coming back to London.
The nationwide tour, which has been seen by over a million people, finishes in June at the Manchester Opera House.