All passports issued after October 2019 will now be navy blue, similar to the design that first came into use nearly 100 years ago, BBC reported.
The European parliament's chief Brexit coordinator, Guy Verhofstadt, claimed that the decision to change passport colour as a victory for Brexit was mendacious, tweeting that "the United Kingdom could have had any passport colour it wanted and stay in the EU".
From the first day of Brexit, March 29 2019, burgundy-coloured new passports will still be issued, but no longer with any European Union insignia on them.
Britain's immigration minister Brandan Lewis announced on Thursday all passports issued after October 2019 will be navy blue in a return to the UK's "old blue" model it had for most of the 20th century.
Robbie Gibb, Mrs May's director of communications, borrowed Donald Trump's favourite phrase to quash claims that the change in passport will hit taxpayers' wallets.
Currently, the British passport is burgundy, in line with most other member states of the EU.
It is being seen as a symbolic victory by members of the Brexit movement.
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The redesign, which routinely happens every five years, will come as part of a £490 million contract which also covers printing and assembling passports and runs for 11-and-a-half years.
The design changed in 1988, with the last blue passport given out in 1993.
Immigration Minister Brandon Lewis said Brexit presented an opportunity to "restore our national identity and forge a new path for ourselves in the world". "The UK could have had any passport colour it wanted and stay in the European Union".
The burgundy European Union passport will go the same way as the passport-type papers bearing a "safe conduct" request that were first referred to in the 15th century.
He said the new blue passports will also be one of the most secure travel documents in the world with new features to protect against fraud and forgery. "Now we've got them back", he wrote on Twitter.
It was reported in September that a French and German company had been shortlisted to make the new passport, alongside British banknote printer De La Rue.
Entrepreneur James Caan said: "A country that would spend £500m to change the colour of a passport while children sleep on the streets is a country whose priorities are wholly out of whack".