The event will wrap up an exciting year for sport in Scotland, which is hosting the Commonwealth Games in Glasgow in July, as well as the Ryder Cup at Gleneagles in September.
Organisers have said they are expecting around 12,000 guests at this year's star-studded awards.
Barbara Slater, director of BBC Sport, said: "As hosts of this year’s Commonwealth Games, it’s fitting that Glasgow rounds off what will be a spectacular year of sport by staging BBC Sports Personality of the Year.
"This show will be something very special; marking the successes of those who’ve excelled in their chosen sport in 2014 and welcoming back those who have made history thanks to their previous achievements. Plans are now well underway for this year’s Sports Personality I am already looking forward to it."
Councillor Gordon Matheson, leader of Glasgow City Council, added: "We’re delighted that Glasgow has been chosen to host the 2014 BBC Sport Personality of the Year in December, rounding off the most spectacular year in our city’s sporting history.
"As one of the top five venues in the world, the SSE Hydro is a fitting location to host the star-studded ceremony and strengthens our city’s reputation for delivering world-class events on a major scale.
"As we get ready to host the best ever Commonwealth Games, the BBC Sports Personality of the Year will give us the opportunity to remember and celebrate again the achievements, in Glasgow, of the world’s top athletes."
The 13,000-capacity venue will also in November.
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