The team of Bradley Wiggins, Ed Clancy, Steven Burke and Owain Doull roared round the velodrome to set a time of three minutes 50.570 seconds, beating their previous mark of 3:51.659 set at the London Olympics in 2012.
They will face Australia in the final as they seek a third consecutive Olympic title in the event.
Britain's women also set a world record in the team pursuit on qualifiers on Thursday.
(Reporting by Martyn Herman; Editing by Meredith Mazzilli)
