The announcement was made on Wednesday by the International Olympic Committee (IOC).
It's very good news for Britain's bid to hold the 2012 Summer Olympics, because Vancouver is in the continent of North America.
That's where another hotly-tipped bidder for 2012, New York, is.
Around the world
In the past the people who decide who hosts the Olympics - the IOC - have said they like to spread the Games around the world.
That means it's much more likely the IOC will vote to send the 2012 Games to a continent that isn't North America, hitting New York's chances hard.
And with China in Asia hosting the 2008 Olympics, the chances of the Games being in Europe in 2012 could be a lot closer.
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