The event will be broadcast live from Excel. The exhibition venue hosted seven Olympic events and six Paralympics sports during the London 2012 Games, which was more than any other venue in the capital.
Excel attracted more than 1.5 million visitors during the Games, with numbers topping 70,000 on the busiest day.
James Rees, director of conferences and events at Excel, said the event will be a "fitting climax" to the venue's year.
"It is a huge honour to have been chosen as the venue for Sports Personality of the Year and we are delighted to be hosting this prestigious event at Excel London.
"In what has been an amazing year for sport, we look forward to welcoming so many champions, many of whom found Olympic and Paralympic glory at Excel over the summer."
Last year the event was held at MediaCity in Manchester.
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