Dame Prue said she was “thrilled” that Nigella would be taking over her role in the tent.
“She’s sassy, fun and she knows her onions – and her croissants, cake and crumble,” Dame Prue added.
Channel 4 controller Ian Katz said the broadcaster was “incredibly excited about the marriage of two great British icons: Bake Off and Nigella”.
Dame Prue was hired for Bake Off after the series jumped from the BBC to Channel 4 in 2016.
She replaced Dame Mary, who left the show along with presenters Mel Giedroyc and Sue Perkins after the move.
The programme will return for its 17th series later this year, with Lawson and Hollywood alongside current hosts Alison Hammond and Noel Fielding.
Writing after Lawson’s appointment was rumoured last week, the Guardian’s Stuart Heritage said, external that The Great British Bake Off has “lost its way” and “become slightly long in the tooth over the last half decade or so”.
He added Lawson would give the show a shot in the arm, writing: “She is spectacularly British, and manages to balance the sort of familiarity that will reassure existing viewers with a level of international first-name recognition that might even end up growing the audience.”