Rolls-Royce Motor Cars will also take part in the show, completing a full BMW Group line-up.
Taking place in July 2006 at the 100-acre ExCel site based in London’s docklands, the decision will see the return of the BMW brand which has not been present for the past two British motor shows.
Jim O’Donnell, managing director of BMW (UK) Ltd, said: "We have been critical of rising costs at the NEC motor shows and felt that we could spend our marketing budget more wisely.
"However, I believe the new show, in the heart of our capital city, has addressed my concerns and I am delighted that we will be attending the 2006 show with BMW and Mini. Mini has been present at every British motor show since the car’s launch in 2001 and I can guarantee that we will use every opportunity to present our brands in an interesting and innovative way. We hope the new show will prove to be a huge success."
Organised by the Society of Motor Manufacturers and Traders, the first motor show took place at Crystal Palace in 1903. From 1937 to 1976 it was held at Earls Court before moving to the NEC in Birmingham in 1978. The British International Motor Show has taken place every other year since then, with the last show in May 2004.