The two bands announced the collaboration at a press conference in London this morning (11.11.13) and are set to head out on tour next year.
James Bourne and Matt Willis will represent Busted - original lead singer Charlie Simpson will not be part of tour - while all the McFly boys, Tom Fletcher, Danny Jones, Dougie Poynter and Harry Judd, will take part.
McBusted already has a Twitter account with 11,000 followers and a recent post said: ''Huge announcement ... McFly & Busted are coming together for a tour in April 2014.''
The two bands previously teamed up at McFly's 10th anniversary show in September, when Busted joined the boys on stage at London's Royal Albert Hall.
The musicians performed the classic Busted hits 'Year 3000' and 'Air Hostess', before playing McFly's 'Shine A Light'.
The press conference was hosted by Matt's wife Emma Willis, who could barely contain her excitement when she introduced the guys.
McBusted will kick off their live dates on Friday, April 18 at Glasgow's SSE Hydro, the first of 11 live shows.
Charlie quit Busted in 2004 to form rock band Fightstar and is currently pursuing a solo career. Since leaving the pop group, Charlie has sought to distance himself from Busted.
McFly frontman Tom previously admitted he was blown away by the reaction the band's previous live collaboration received.
Tom said: ''We had an amazing time performing with Busted on stage. It was so much fun. We didn't expect the kind of reaction we got.''
McBusted 2014 tour dates:
Friday 18 - Glasgow, SSE Hydro
Saturday 19 - Liverpool, Echo Arena
Monday 21 - Bournemouth, BIC
Friday 25 - London, The O2
Monday 28 - Newcastle, Metro Radio Arena
Tuesday 29 - Nottingham, Capital FM Arena
Wednesday 30 - Leeds, First Direct Arena
Saturday 3 - Birmingham, LG Arena
Sunday 4 - Sheffield, Motorpoint Arena
Tuesday 6 - Cardiff, Motorpoint Arena
Friday 9 - Manchester, Phones 4U Arena
There's already an Oscars buzz surrounding this movie.