The shock move follows speculation the Prime Minister would call a poll to shore up her parliamentary position as Britain leaves the EU and given Labour's dire position in the polls.
Under the Fixed-Term Parliaments Act, introduced under the last coalition government, the next election was not due until 2020.
However, a poll can be called before then if backed by two thirds of MPs or if there is a no confidence vote in the Government.
The PM is to table a motion in the House of Commons on Wednesday and has called on MPs to back an election.
Jeremy Corbyn has previously said Labour was ready to take its case to the country, but many MPs are likely to have private reservations, given the party's poor performance.
Making the dramatic announcement, following the weekly Cabinet meeting, Mrs May said she had come to the decision "reluctantly", but argued other political parties opposed Brexit.
Speaking in Downing Street she said: "At this moment of enormous national significance, they should be unity in Westminster, but instead there is division.
"In recent weeks Labour have threatened to vote against the final agreement we reached with the European Union.
"The Liberal Democrats have said they want to grind the business of government to a standstill.
"The Scottish National Party say they will vote against the legislation that formerly repeals Britain's membership of the European Union and unelected members of the House of Lords have vowed to fight us every step of the way."
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