The decision comes after a review of "current and future possible security risks associated with the installation of visual surveillance systems on the government estate," cabinet office minister Oliver Dowden said.
"The review has concluded that, in light of the threat to the UK and the increasing capability and connectivity of these systems, additional controls are required," Dowden said.
The directive applies to cameras made by companies subject to Chinese security laws and includes guidance for departments to disconnect such devices from core computer networks and to consider removing them altogether.
It comes months after dozens of politicians called for a ban on the sale and use of security cameras made by Hikvision and Dahua, two partly state-owned Chinese firms, over privacy fears and concerns of the companies' products being linked to human rights abuses in China.
Hikvision denied the claims in a statement and said the company would seek to engage with British authorities to understand the decision.
"Hikvision cannot transmit data from end-users to third parties, we do not manage end-user databases, nor do we sell cloud storage in the UK," a company spokesperson said.
The British office of Dahua did not immediately respond to emails seeking comment.
The United States has slapped trade and usage restrictions for cameras made by Hikvision, Dahua and other Chinese firms.
Most British public bodies use surveillance cameras made by Hikvision or Dahua, privacy advocacy group Big Brother Watch said in July.
Several government departments including the interior and business ministries have had Hikvision cameras visibly in use on the front of their buildings, the group said.
Dowden said departments had been instructed to cease deployment of equipment onto sensitive sites, where it was "produced by companies subject to the National Intelligence Law of the People's Republic of China".
"Since security considerations are always paramount around these sites, we are taking action now to prevent any security risks materialising," he said.
Image courtesy: Hikvision