Tory peer Lord Bates said Islamic law is potentially being applied in an "unacceptable" way in England and Wales.
A number of Sharia councils operate in the UK to offer resolution to disputes – but they have no jurisdiction in criminal matters.
Home Secretary Theresa May first floated the idea of a review into Sharia courts in March, saying they are used to discriminate against women.
But it was not part of the Conservatives' General Election manifesto.
Lord Bates has now confirmed the review will go ahead, saying: "Sharia councils may be working in a discriminatory and unacceptable way.
"That is why, as part of the forthcoming counter-extremism strategy, Government will commission a full, independent investigation to assess to what extent Sharia is being applied in a manner that is unacceptable."
.... Earlier this year it was reported that 100,000 British Muslim women are being duped into sham Sharia marriages.
The arrangements – which are not recognised under British law – can leave women with no rights to a fair share of assets if the relationship ends.
But Amra Bone, Britain's first Islamic judge on a Sharia Council, denied its courts discriminated against women.
Mrs Bone said: "We apply Sharia principles within the law of the land. We are a voluntary body and can't make orders – we just advise.
"People don't want us to be judgmental." [Daily Express] Read more