A portrait of Churchill, adapted from a Dec. 30, 1941, photograph taken by Yousuf Karsh, and his famous declaration "I have nothing to offer but blood, toil, tears and sweat" will be featured on the five-pound banknote, the BBC reported Friday.
Churchill will replace social reformer Elizabeth Fry on the banknote.
Bank of England Gov. Sir Mervyn King announced the new banknote from Churchill's former home of Chartwell, in Westerham, Kent.
"Our banknotes acknowledge the life and work of great Britons. Sir Winston Churchill was a truly great British leader, orator and writer," King said. "Above that, he remains a hero of the entire free world. His energy, courage, eloquence, wit and public service are an inspiration to us all."
The Bank of England said the new banknote will be put into circulation in 2016.
British banknotes are redesigned on a relatively regular basis in an effort to maintain security and prevent forgeries, the BBC said. The Bank of England governor has the final say about who appears on a banknote.