Speaking during the series five premiere and exclusive screening of episode one at Birmingham Town Hall on Thursday night, he added next year more filming will take place in its home city.
In the past the series has been filmed around the UK in the likes of Liverpool, Manchester, Stoke, Cheshire and various parts of Yorkshire.
The show also regularly returns to the Black Country – with a second home at the Black Country Living Museum.
The cast were spotted shooting scenes for series five there towards the end of 2018.
But the news that the BBC drama will make a permanent base in Birmingham for future series is set to delight fans.
It has being criticised in the past for being filmed away from the city it is based on.
The show is expected to run for two more seasons taking the story of the Shelby family to the outbreak of the Second World War.
And there are also aspirations that it could also head to the big screen with a movie in the years to come.
Series writer and creator, Mr Knight, said: "It is so great to be in Birmingham – the whole series is about the history of Birmingham.
"It is great to be here and meet the people of Birmingham. We all love this it is a very precious thing. We are going to keep it going, we have another two series to do.
"We are going to shoot series seven in Birmingham and lots of series six in Birmingham.
"For me it is all about this city and what we can do. We have always had great directors and for this series I think this is the best series."
A host of stars from the show including Helen McCrory, Sophie Rundle, Finn Cole and Packy Lee took to the red carpet on Thursday night, which saw hundreds of fans line up outside Birmingham Town Hall to meet the stars.
The highly-anticipated first episode of the show was later screened inside the historic town hall, followed by a question and answer session with the cast.
Cillian Murphy and Paul Anderson, who play Tommy and Arthur Shelby respectively, were not present at the premiere due to prior commitments.
Helen McCrory, who stars as fan favourite Aunt Polly, said: “Series five opens within the first few seconds the stock crash happens and the Shelby family are back on the streets again.
"It is fantastic to be here in Birmingham. Steven Knight always insists we have the premieres here – and quite right too!”
Sophie Rundle, who plays Ada Shelby, said: “The show just gets better and better, every season. It is a beautiful thing to have the premiere here in Birmingham – it is like a character in the series, it is so vital.
"I just love the show. I feel a real sense of loyalty to it.”
Packy Lee, who stars as Johnny Dogs in the series, said: "It has been a fantastic turn out in Birmingham for the series five premiere. This is the best series we have had and we are elated to represent Birmingham, we think it is a fantastic city. I love Birmingham."
The man behind the character of Michael Gray, Finn Cole, said: "Fans can expect more of the stuff that they love in series five, more of the great costumes, fantastic writing, great characters and the great actors that we have on the show.
"It is amazing being back in Birmingham, it is incredible. It is really quite extraordinary to meet everyone and see the full support of the show."
New cast members joining the series this year include Sam Claflin, Charlene McKenna, Anya Taylor-Joy and Daryl McCormack – who said at Thursday's premiere that it was "an incredible honour to be part of the show".
Series five of the Peaky Blinders finds the world thrown into turmoil by the financial crash of 1929 – with opportunity and misfortune everywhere.
When Tommy Shelby MP is approached by a charismatic politician with a bold vision for Britain, he realises that his response will affect not just his family's future but that of the entire nation.
Peaky Blinders series five is to air on BBC One later this year.