Daniel Craig will be shooting at the seaside resort instead of more exotic locations like India, China and Bali in a bid to save money.
The original plan to film the 23rd 007 film in six different countries was scrapped after Skyfall suffered from a series of 'technical and financial problems'.
A source told The Daily Mirror: 'To say some of the cast and crew are a bit gutted is an understatement.'
Turkey will now be the only foreign location as the film-makers have decided to get behind the British industry by using sites around the UK.
'As well as Pinewood’s incredible facilities, the UK has an array of amazing, untapped resources, and some stunning beaches particularly along the south coast and parts of Wales,' the source added.
'While Bognor is hardly the most exotic of locations, it is important for the franchise that they support British industry, and give something back.
'Everyone is confident this will be one of the best Bonds ever.'
Skyfall has suffered from a series of delays after film studio MGM filed for bankruptcy.
Before filming kicked off, Craig - who makes his third outing as Bond - said he was 'gagging' to get started.
He told Extra: 'I'm gagging to go, I've had a break now.
'Although it sort of seemed like it was never going to happen, it always was going to happen - it was just a matter of sorting out people and financing.
'It's been nice to have some time off from the role, it's given me a chance to have a break.'
The first photo from Skyfall was released recently showing Craig relaxing by a swimming pool in just his Speedos, which was shot at the Four Seasons Hotel in London.
Craig will be joined by Javier Bardem, Ralph Fiennes and Ben Whishaw in the new movie.
Directed by Sam Mendes, Skyfall is due for release of October 26 this year.
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