New Type 26 frigates to be based at Devonport
All the Royal Navy's new Type 26 frigates are to be based at Devonport Naval Base in Plymouth.
The announcement was made by Defence Secretary Gavin Williamson, who was onboard HMS Montrose in Plymouth Sound.
There had been speculation that the eight frigates might be split between Plymouth and Portsmouth.
The global combat ship, which is primarily designed for anti-submarine warfare, is due to enter service in the 2020s.
Mr Williamson said Plymouth and its naval dockyard were part of the nation's history and an integral part of ensuring Britain remained "safe and secure".
"Looking to the future, it's important to continue to invest here in Devonport and it's important to demonstrate it has a glorious past and it will have an even more glorious future," he added.
Labour MP Luke Pollard said it was a "good news day" for Plymouth, tweeting: "As Devonport's MP I hope it gives us the security and future our fantastic armed forces and civilians who support the fleet deserve."
"Since launching the campaign in December last year we have had trade unions, MPs, the city council under both parties and the public all come together to back Devonport as the base for the new frigates," he added in a statement.
Johnny Mercer, the Conservative MP for Plymouth Moor View, described the decision as "a promise delivered", tweeting that it was the first expansion of the military in Plymouth for a generation.
The decision has also been welcomed by the Labour leader of Plymouth City Council and the Conservative shadow leader, who both spoke of the need to continue the fight to secure the future of the Royal Marines in the city.
Steel was cut on HMS Glasgow - the first of the frigates being built at BAE's Govan and Scotstoun yards on the River Clyde in Glasgow - in July last year.
The Type 26 is due to partially replace the current Type 23.
Carrying a crew of 118, the Royal Navy describes the 6,900-tonne vessel as the "workhorse" of the fleet, undertaking three core roles - war fighting, maritime security and international engagement.
Commodore Peter Coulson, Devonport Naval Base Commander, said the decision to base all eight frigates was "great news" for the Royal Navy, Devonport and the city of Plymouth.
"This really secures our future here for another generation," he added.