The difference between the number of people coming to and leaving the UK has dropped to an estimated 273,000 in the year to the end of September 2016.
This equates to almost 50,000 less foreign nationals coming to the UK compared to the previous year.
It is said to be the lowest level recorded since June 2014.
And it is the first time net migration has dipped below 300,000 in two years.
The figures, published by the Office for National Statistics, also include several weeks after the Brexit referendum in June.
Immigration was a major issue in the vote which saw the nation divided.
Last year net migration was 335,000, with 284,000 new arrivals from the EU, according to ONS figures.
But it comes as Daily Star Online revealed how experts warned Brexit will NOT reduce immigration to the UK - because it is impossible for us to "pull up the drawbridge".
Tory MP Stephen Crabb insisted: “Brexit will not mean a cut in immigration after all”.
And the failed Tory leadership contender said people who voted for Brexit thinking it would reduce immigration are in for a “rude awakening”.
Brexit Secretary David Davis was yesterday forced to admit it would take "years" for Brits to fill low-skilled EU migrant jobs.
Around 323,000 people left the UK including a "statistically significant" rise in citizens from the EU8 nations - Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia - which joined the EU in 2004.
Nicola White, head of international migration statistics at the ONS, said: "Although net migration in the year to September 2016 has not seen a statistically significant change, we have seen a statistically significant decrease in net migration among EU8 citizens and non-EU citizens from Africa, the Americas and Oceania.
"This is the first release to contain long-term international migration estimates including three months of data following the EU referendum.
"Although we have seen a fall in net migration of EU8 citizens, there have been continued increases in immigration from Romania and Bulgaria, so it is too early to saywhat effect the referendum result has had on long-term international migration."
The government has welcomed the new figures amid blistering criticism over failing short in its target to bring numbers below 100,000.
Immigration Minister Robert Goodwill said the statistics were "encouraging" and vowed to continue making progress to bring net migration numbers down to "tens of thousands".
He added: "The UK will always welcome those who contribute and benefit our country, but there is no consent for uncontrolled immigration."
çK, said the figures were a "a step in the right direction".
"Significantly, EU migration overall is virtually unchanged over the year.
"There is still a net inflow from Eastern Europe, especially from Romania and Bulgaria.
"These workers are generally in low-paid employment so this is where our proposal for work permits confined to those coming for skilled work would have a very useful effect on EU migration."
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