The venue for the PDC World Darts Championship will switch from Purfleet to Alexandra Palace in London.
Phil Taylor and Raymond van Barneveld met in the 2007 final
The move, which comes after 14 years at the Circus Tavern, will see the session capacity increase to more than 2,500.
Alexandra Palace hosted the finals of the News of the World competition from 1963 to 1977.
Prize money for the tournament will increase to £1m over the next three years following a sponsorship deal with bookmakers Ladbrokes.
"The Circus Tavern has created a unique atmosphere for players and fans and become something of a Mecca for darts supporters around the world," said PDC chairman Barry Hearn.
"But the simple fact is that we have to move to Alexandra Palace if we are to continue growing.
"There will be the opportunity for greater crowds and this in turn allows us to make the historic increases in prize money over the next three years."
The winner of the 2008 tournament, which begins in December, will collect £100,000, a prize which will rise to £200,000 by 2010.
Dutchman Raymond van Barneveld is the current title-holder after beating 13-time champion Phil Taylor in an epic final in January.