"Neighbours will be a greatly prized part of our schedule and suitably cherished by us," said Five's managing editor of content.
Fremantle Media, which owns the rights to the soap wanted £300m over eight years from the BBC. But the Beeb turned down that request.
Both Fremantle and Five are owned by the RTL Group media company.
Five poached rival Australian soap Home and Away from ITV in 2000. It is expected that Five will show both soaps back-to-back as part of an 'Aussie hour.'