The tournament will be played at Close House Golf Course in Newcastle, where Westwood has served as the touring professional since 2011.
The event was rekindled in 2015 after a six-year hiatus, and Westwood joins Ian Poulter and Luke Donald as recent tournament hosts. Poulter hosted the event at Woburn Golf Club in 2015, while Donald served as host last week at The Grove outside London.
"I'm delighted to announce that I'll be taking over hosting the British Masters from Luke next year," Westwood told Sky Sports. "I'm sure it will be a fantastic test of golf, and all the players will enjoy coming up to the northeast and testing their skills around Close House."
Westwood finished third last week at The Grove, his best worldwide finish since a runner-up result at the Masters. The 43-year-old relishes an opportunity to take the event to a new part of the country next fall.
"Obviously the British Masters is back on the map, but I think we should try to move it around a little bit, let everybody in Britain see it," he said. "It's been down in London area for a couple years, and now it'll be nice to take it further afield and up to Newcastle."