The Welsh Rugby Union, with the support of the Welsh Assembly Government and local partners, were awarded the ERC finals following a competitive bid process.
The decision creates a major opportunity to build on the city's rich Heineken Cup heritage after the highly successful staging of the two finals in 2011 when ERC's unique weekend festival of rugby generated a direct financial dividend of £24 million for Cardiff.
The Welsh capital is steeped in European club rugby history as the first two European Cup finals were played at the Cardiff Arms Park in 1996 and 1997, with Cardiff reaching the inaugural decider only to lose to Toulouse who have since gone on to win the coveted trophy on four occasions.
Four Heineken Cup finals have been played to date at the world class Millennium Stadium with the most recent decider two years ago producing a classic European contest when Leinster defeated Northampton Saints with a dramatic second half comeback.
Next year, ERC's highly popular European Champions Village will once again provide a focal point in the heart of Cardiff for fans to savour the unique atmosphere of a major European club rugby occasion.
Speaking at the announcement in Cardiff, ERC Chief Executive Derek McGrath said: "With fans from all corners of Europe set to travel to Wales next May, we see Cardiff as a hugely appealing setting for the finals weekend which has developed into one of the great events in Europe's sporting calendar.
"We will be working with the WRU, the Welsh Assembly Government, Visit Wales and Cardiff City Council to ensure that all supporters will enjoy a thoroughly positive experience.
"Cardiff has been the setting for some of the great finals in the past and in many ways, European club rugby is returning home.
"I have no doubt that the 2014 weekend at the Cardiff Arms Park and the Millennium Stadium will be yet another celebration of all that is good about European club rugby."
WRU Group Chief Executive Roger Lewis commented: "We are delighted to have been chosen to again host the next Heineken Cup final at the Millennium Stadium in Cardiff.
"We know from experience that it will be a fantastic rugby occasion and a great opportunity for Cardiff and Wales to welcome tens of thousands of supporters.
"There is something special about a Heineken Cup final and our events team at the stadium has a well-deserved reputation for ensuring that we deliver a spectacular atmosphere."
John Griffiths, Welsh Government Minister for Culture and Sport, added: "I'm delighted that the ERC have chosen Wales and the Millennium Stadium and Cardiff Arms Park to host next year's finals and we look forward to welcoming the supporters and teams to Wales once again.
"The very nature of this event, with travelling supporters staying in the area for one night or more, means that the Heineken Cup final is by some distance the most economically lucrative single-day major event Wales has ever hosted."
Tickets for the finals will go on sale in early September and following the huge demand for last season's innovative offering in Dublin which included tickets for both matches and passes to local tourist attractions, ERC is working with its local partners in Cardiff to develop a similar two-final European club rugby festival package for 2014.
The Heineken Cup final is broadcast in over 150 countries worldwide and players from as many as 12 nations were involved in the 2013 showpiece game between Toulon and Clermont Auvergne.
ERC's second tournament, the Amlin Challenge Cup, continues to grow in stature highlighted by the pedigree of clubs such as Leinster, Biarritz Olympique, Harlequins and Cardiff Blues who have won the title in recent seasons.
CARDIFF 2014 FINALS:
Amlin Challenge Cup final - Cardiff Arms Park, Friday, May 23 (8pm)
Heineken Cup final - Millennium Stadium, Saturday, May 24 (5pm)
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