The Federation Internationale Des Echecs (FIDE) said London was chosen from a number of major capital cities as the venue for the final rounds of the tournament, starting in late November 2003 with the final rounds in January 2004.
This follows a recent decision by FIDE to establish the World Championships as a bi-annual event.
FIDE confirmed it is finalising negotiations for the location of the London event and will be announcing the details shortly.
Octagon UK has been appointed by FIDE to develop and manage the event and secure commercial partners.
