Food labelling will be made consistent across all supermarkets so that shoppers can easily spot the healthiest option.
The new labelling system will provide consumers with clear information on the content of food, Health Minister Anna Soubry said.
The system will include information on guideline daily amounts (GDAs), be colour coded with a traffic light system and use the words "high" "medium" or "low" to inform people about how much fat, saturated fat, salt, sugar and calories are in food.
Ms Soubry said: "The UK already has the largest number of products with front of pack labels in Europe, but research has shown that consumers get confused by the wide variety of labels used.
"By having a consistent system we will all be able to see at a glance what is in our food. This will help us all choose healthier options and control our calorie intake.
The announcement has been praised by supermarket chain ASDA who said: "We're really supportive of the Government announcement."
The retailer added: "We urge manufacturers to get involved and make their labels really clear and consistent."
Peter Hollins, Chief Executive at the British Heart Foundation said: "This is a quantum leap for public health and the result of tireless work by health campaigners and positive action by our governments."
The new label is expected to be in use by summer next year.