Warner Bros. Leavesden Studios is set to expand with three new sound stages.
The film studio will construct one new 35,000 ft-squared sound stage, and two further stages of 17,000 ft-squared at its £100million site.
The company hopes this expansion will make the UK an even more attractive destination for productions from around the world.
Josh Berger CBE, president of Warner Bros, said: "The UK is known for world class creativity and innovation, and some of Warner Bros. greatest successes have been produced here with British talent, at the studios we're continuing to invest in and grow.
"Today we're delighted to be reinforcing our commitment to the UK creative industries through the expansion of our studios and the announcement that our highly anticipated Tarzan action adventure film will be shooting there."
Warner Bros. opened its Leavesden studio two years ago in June 2012 after a £100 million redevelopment of the site on the Watford and Three Rivers border.
The site had been operating as a film studio since 1994 and was the set for international blockbusters James Bond: Goldeneye, Star Wars Episode One: The Phantom Menace and all eight Harry Potters films.
Business secretary Vince Cable said the Government’s substantial tax reliefs for the film, TV, animation and videogames sectors, combined with recent investment of more than £20m in skills and training for the next generation has provided a huge boost to the industry.
He said: "British talent, services and products are in high demand around the world and our £71 billion creative sector is one of the UK’s most important industries, employing thousands of people across the country.
"UKTI’s new international strategy builds on the UK’s global reputation for innovation and quality by setting a goal to double creative exports, double the number of creative companies that trade and establishing the UK as the favoured location for inward investment for the creative industries sector, creating long term jobs and building a stronger economy."
Warner Bros. has stated production on a new Tarzan action adventure film, starring Alexander Skarsgard, Margot Robbie, Samuel L Jackson, Christoph Waltz and directed by David Yates - director of the last four Harry Potter films. The film will join Warner Bros.' Pan, directed by Joe Wright, which has been filming in the UK since April 28.
Culture Secretary Sajid Javid added: "For years the UK has been at the cutting edge of the creative industries - and we want that to be the case for decades to come."