Jane Austen will appear on the £10 note, replacing the father of evolution, Charles Darwin, the Bank of England has confirmed.
Rumours grew when new Bank of England Governor Mark Carney said in June that her place was well merited as "one of the greatest writers in English literature".
"Austen joins Adam Smith, Boulton and Watt and, in future, Churchill. Our notes will celebrate a diverse range of individuals who have contributed in a wide range of fields," he said.
It is thought that the first Austen £10 notes will be in circulation in 2017, a year after the new Churchill £5 notes are released.
The £10 notes will include a quote from Austen's Pride and Prejudice, "I declare after all there is no enjoyment like reading!" and a portrait of Austen commissioned by her nephew James Edward Austen Leigh, adapted from a sketch by her sister.
There will also be an illustration of Elizabeth Bennet and the image of Godmersham Park, home to Austen's brother, Edward.
The BoE also said it was planning to review its process of selecting historical figures for banknotes so to "represent the full diversity of British people".
A campaign for more famous women to be featured grew out of comments by Carney's predecessor, Mervyn King, when he said he would replace the image of social reformer Elizabeth Fry with Churchill on £5 notes.
Other than the Queen and Fry, the only other woman represented on paper money has been Florence Nightingale.
"We want people to have confidence in our commitment to diversity," said Carney.
Austen was born in 1775. Her novels include Pride and Prejudice, Emma, Northanger Abbey, Sense and Sensibility and Mansfield Park.
Many of her works highlight the dependence of women on marriage as their only way of ensuring economic security and social standing.