Rachel Treweek, 52, who is currently an Archdeacon in the London diocese will be consecrated as the Diocesan Bishop of Gloucester.
This is the first time that a woman has been assigned a Diocese. It is a more senior post than the appointment of Rev. Alison White as the Bishop of Hull.
The appointment of Archdeacon Traweek as the Diocesan Bishop of Gloucester makes her the most senior woman bishop in the Church of England, the BBC reported. She will also be the first woman bishop to be seated in the "House of the Lords," according to a new bill allowing about 24 diocesan bishops to participate in the Parliament.
"The Church of England has welcomed Royal Assent today for an Act that will bring forward the introduction of the first women diocesan bishops into the House of Lords," said the Church of England.
The Church website added, "Under the terms of the Act, the Venerable Rachel Treweek, Archdeacon of Hackney, who is announced today as the next Bishop of Gloucester will become the first female diocesan bishop to join the Bishops' Benches in the House of Lords."
Bishop Tim Stevens, who retires in July said the presence of women bishops will "enrich and strengthen" the representation of the church and strengthen the legislative opinions of bishops.
"The passing of the Act is good news for Parliament as well as the Church. It means that in the next Parliament for the first time the Bishops' Benches will be occupied by women as well as men," Bishop Tim was quoted as saying by BBC News.
Rev. Treweek described her appointment as "an immense joy and privilege."
BBC religious affairs correspondent said the Traweek appointment is a sign of a new beginning and a significant milestone in the plight of women's long journey as clergy. It also adds real power and authority in the Church of England, since about one third of the church-goers in the UK are protestant and attend the UK Church.