Britain's Chancellor of the Exchequer George Osborne has revealed that the recently announced spinoff will also be shot in the UK.
The minister recently visited the set of JJ Abrams' set in London, writes the Hollywood Reporter.
"On set of Episode VII tonight, can announce another #StarWars film will be made in UK. A #LongTermEconomicPlan in a galaxy far far away," Osborne tweeted.
The new film will begin shooting in 2015.
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"Lucasfilm and Disney's decision to shoot the Star Wars stand-alone movie in the UK is testament to the incredible talent in Britain," he added.
In recent years, the UK has introduced an aggressive set of tax incentives to lure top Hollywood projects. The Star Wars films are projected to be a major boon to the local economy and film sector.