The event will take place between 8-11 October 2012 and will be the third Conservative Party Conference to be hosted in the city.
Marketing Birmingham and The NEC Group have been responsible for negotiating and securing the deal with the party.
Birmingham City Council leader Mike Whitby said: "The conference not only has an economic impact on Birmingham - the 2008 Conservative Party conference contributed £28m in economic and media impact to Birmingham - but brings to our city some of Britain's most powerful politicians and civil servants who will help shape policy affecting the next 20 years, and understand the role our city can play in complementing that agenda."
Conservative Party chairman Eric Pickles said: "We're delighted to be returning to Birmingham for our autumn conference in 2012. Birmingham proved to us in 2008 that it has an exceptional conference venue in the ICC and Symphony Hall, a good range of accommodation and a well developed transport infrastructure."