Released late November, the album took over Emeli Sande's 'Our Version of Events' which topped the charts in Britain in 2012, said the Hollywood Reporter.
By Monday, the album had sold over 700,000 copies, according to the Official Charts Company, which tracks music sales in Britain,
'Midnight Memories' is the third album by the boy band comprising Harry Styles, Niall Horan, Liam Payne, Louis Tomlinson and Zayn Malik.
"This tops an amazing year for us!" said Payne.
"We're so excited to have the biggest selling album in the UK this year, especially with a record we are all so proud of," he added.
Last week the band's home entertainment release of the movie 'This Is Us', became the fastest- selling music DVD/Blu-ray in British history with a record sale of 270,000 copies in the first three days.
The previous record was held by pop legend Michael Jackson's 'This Is It' which sold 10,000 copies in 2010.
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