'Star Wars Episode VII' will be filmed in the UK.

The next installment of the science fiction saga will continue its tradition with scenes being shot in various locations when production begins in 2014.

Lucasfilm and British Chancellor of the Exchequer George Osborne have reached an agreement over the filming of the first movie in the highly anticipated third trilogy of the series.

In a statement, Lucasfilm president Kathleen Kennedy said: ''We've devoted serious time and attention to revisiting the origins of 'Star Wars' as inspiration for our process on the new movie, and I'm thrilled that returning to the UK for production and utilising the incredible talent there can be a part of that.''

The previous six 'Star Wars' movies have been filmed in the UK and George is ''delighted'' to see its return.

He added: ''I am delighted that Star Wars is coming back to Britain ... [The] announcement that the next Star Wars film will be shot and produced in the UK is great news for fans and our creative industries.''

The news follows reports scenes will be filmed in Scotland, with its ''stunning scenery'' described as a perfect fit for depicting ''mountainous planets''.

A source had revealed: ''Location bosses feel Scotland possesses stunning scenery perfect for movie backdrops.

''They will look great on the big screen, and the rock formations will replicate the perception of mountainous planets.''

The film - directed by 'Star Trek Into Darkness' boss J.J. Abrams - will also see the return original cast members Mark Hamill (Luke Skywalker), Carrie Fisher (Princess Leia) and Harrison Ford (Han Solo).