The Mini Coupe and Roadster will be built at BMW's plant in Oxfordshire, creating up to 1000 jobs.
The cars, which will be unveiled at the Frankfurt motor show on 15 September, are expected to go into production within the next three years.
See the Mini Coupe Concept picture gallery
Speaking about the news, business secretary Lord Mandelson said: "The production of two new Minis is very good news for Oxford, and for the UK car industry.
"It is a demonstration of BMW's long-term commitment to the UK.
"British drivers have had a long love affair with the Mini and I'm sure that this will continue for many years to come."
It marks good news for Mini, which earlier this year shut its site for a week and cut 850 jobs.
Production was also suspended in June due to a strike in France involving a firm that supplies bearings for the cars' steering units.
Mini's Cowley plant currently employs around 4000 workers, building three versions of the Mini.
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Re: New Minis to be built in Oxford
Well, I guess you wouldn't look at something called a 'Mini/MINI' if you wanted a load-lugger. Will be interesting to see what it actually will look like and if it's on the new platform for the next generation car. Shame people are being so negative, it's great news for the jobs industry. Also, it really doesn't matter whether every component is made here in Britain- surely potential buyers would much rather have something that has been proven to work well than something British that might not just for the sake of patriotism?
Re: New Minis to be built in Oxford
Being built in britain does NOT make it British. If that was the case, then cetain models of Nissan, Citroen etc makes them a british car which oviously its not. The new mini's roof does not blend in with the rear window making it look silly. Plus, its about time Mini's had a decent boot, not the silly glove compartment behind the seats.
Re: New Minis to be built in Oxford
The 3 year timescale is probably quite realistic as if BMW are in the early stages of the design (and I suspect they are) then they've got a lot of work to do. It's not simply a case of slapping on a new roof unfortunately and if other manufacturers can do it quicker then I'd suggest that they're not doing a proper job!