The latest Star Wars film will be made in the UK.
Due to start production next year and be in cinemas in 2015, the much-anticipated seventh episode of the series is being directed by Emmy-award-winning JJ Abrams.
Confirming the move, Lucasfilm president Kathleen Kennedy said she was "delighted that Star Wars is coming back to Britain".
Chancellor George Osborne took to Twitter on Friday to reveal the decision, joking: "May the force be with us..."
"Today's announcement that the next Star Wars film will be shot and produced in the UK is great news for fans and our creative industries, and it is clear evidence that our incentives are attracting the largest studios back to the UK", he said in an official statement.