 The old Wembley hosted the last European Cup final in 1992
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Wembley has been chosen to host the 2011 Champions League final.
European governing body Uefa selected the stadium ahead of Munich's Allianz Arena and Berlin's Olympiastadion.
The news had been expected after Uefa delayed its decision to allow the UK Government to bring in a tax exemption for players appearing in the final.
Dublin's Lansdowne Road has been picked to host the 2011 final of the Europa League, previously the Uefa Cup, as Arsenal's Emirates Stadium missed out.
The Gunners' home ground was ruled out of the running because the same country cannot host both major European finals in the same year.
The Champions League final was last hosted by the UK in 2003 at Old Trafford.
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WEMBLEY'S EUROPEAN CUP FINALS
1992 Barcelona 1-0 Sampdoria
1978 Liverpool 1-0 Club Brugge
1971 Ajax 2-0 Panathinaikos
1968 Man Utd 4-1 Benfica
1963 AC Milan 2-1 Benfica
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Wembley has not staged it since 1992 when Barcelona beat Sampdoria in the year before the competition became known as the Champions League.
Since then, the stadium has been rebuilt at a cost of over £750m.
It missed out on hosting the 2010 Champions League final after failing to provide assurances that players featuring in the final would not be taxed, but the UK Treasury agreed to relax its rules last year.
Staging the final is thought to be worth up to £30m to the economy.
"This is fantastic news for London and the UK," said Football Association chairman Lord Triesman.
"It is acknowledgment of Wembley's ranking alongside the very best football stadiums in the world.
"As Wembley has been chosen to host the Champions League Final this means the Emirates Stadium can't stage the 2011 Europa League final.
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606: DEBATE
ArsenalRules4Eva
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"I would like to take this opportunity to thank everyone at Arsenal for all their valuable support during the bid process and recognise the very strong bid that they put together."
London Mayor Boris Johnson added: "It is splendid news. There is a huge sense of excitement and passion in London for sports and indeed for the 'beautiful game' of football.
"London is delighted to have been successful in the bid to host the 2011 Final and Wembley is a suitably dramatic and superb backdrop for the event."
The Allianz Arena - home of Bayern Munich - will stage the 2012 Champions League final and Bucharest's National Stadium the Europa League final in that year.
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