Steve Rotheram, Labour MP for Liverpool Walton, said: "Today's welcome announcement will spare the families of the 96 the ordeal of having to return to South Yorkshire and relive the horror of the traumatic 1989 inquests.
"It is vital that the process for new inquests proceeds without any unnecessary delays and a judge be appointed, a location determined and time frame established, so that the families can move closer to finally understanding the actual cause of the deaths of their lost loved ones at Hillsborough."
The change to the Coroner's Act is part of a series of reforms by the Ministry of Justice to the coroner system.
Coroners are no longer restricted to holding inquests within their own districts following a change in the law, meaning the forthcoming Hillsborough inquiry could be held anywhere in England and Wales.
Hillsborough victims' relatives have spoken out against the fresh inquest into the deaths of 96 Liverpool football fans being held in Sheffield - site of the disaster and where the original overturned inquest was held.
But a change to the Coroners Act 1988 will mean inquests can be held at different locations in England and Wales, if it is in the best interest of the bereaved family and others, such as witnesses.