The official confirmation by producers Lucasfilm prompted the UK Chancellor, George Osborne, to take to Twitter to claim that the force is strong with the British film industry.
"Just confirmed: the next 'Star Wars' film will be made in UK. Great news for our creative industries. May the force be with us," he posted on Twitter on Friday.
"It is clear evidence that our incentives are attracting the largest studios back to the UK. I am personally committed to seeing more great films and television made in Britain," he added.
"We have devoted serious time and attention to revisiting the origins of 'Star Wars' as inspiration for our process on the new movie, and I am thrilled that returning to the UK for production and utilising the incredible talent there can be a part of that," said Lucasfilm president Kathleen Kennedy.
The company's representatives had met Osborne earlier this year to work on a deal to make the film in this country.