The visit in April will come three years after Britain's Queen Elizabeth made a groundbreaking trip to the republic, which helped to heal deep-rooted unease and put Anglo-Irish relations on a new footing.
Higgins's return visit will be seen as an official sign of further progress following the hard-won peace in Northern Ireland, which remains part of the United Kingdom.
Britain also voluntarily contributed billions of pounds (dollars,euros) towards an international bailout of the Irish economy in 2010.
The 72-year-old poet is expected to stay at Windsor Castle, west of London, from April 8 to 10.
Irish Prime Minister Enda Kenny said in a statement: "I warmly welcome the official confirmation that President Higgins will pay an official visit to the United Kingdom.
"This is a further demonstration of the warm and positive relationship that now exists between Ireland and the United Kingdom.
"The state visit in April, following on the very successful visit to Ireland by Queen Elizabeth in 2011, will be a wonderful opportunity to deepen this even further."
Despite the gradual warming of top-level ties, no Irish president has yet paid a state visit to the country across its only border.
Mary Robinson was the first Irish head of state to meet Queen Elizabeth, when she had tea with her in Buckingham Palace in 1996.
Higgins, a former arts minister, has met the 87-year-old monarch and her husband Prince Philip before, at Belfast's Lyric Theatre in June 2012.
State visits normally begin with a ceremonial welcome and a carriage procession.
A lavish state banquet is thrown, at which both figureheads make speeches.
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