Next year's finals will be held at San Mames Stadium, the home of La Liga side Athletic Bilbao. The stadium has a capacity of 53,289 following its recent refurbishment.
"We are very excited to be taking the best club rugby in the world to fans in what is largely a new market," EPCR Chairman Simon Halliday said. "Bilbao is an excellent destination which breaks new ground for our tournaments and we see this as a big step in the expansion of our sport across the continent."
The Champions Cup is a top-tier competition for clubs that have qualified in their national leagues in countries that are part of the Six Nations, while the Challenge Cup is for clubs from the second-tier.
The French city of Lyon staged the finals weekend last year. That event generated an estimated 20.4 million euros ($21.7 million) for the local economy.
Italy's Milan was due to host the final in 2015 but it instead went to Twickenham after the demise of the old Heineken Cup format.
(Reporting by Aditi Prakash in Bengaluru; editing by Mark Heinrich)
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