Paul Dadge, 40, shared the news on his Twitter account on Tuesday evening.
He was branded a hero after a powerful photo emerged of him helping "the woman in the mask" after the tube bombings.
Mr Dadge will take on Tory Amanda Milling, who had a majority of nearly 5,000 at the last election.
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On 7 July 2005, four suicide bombers with rucksacks full of explosives attacked central London, killing 52 people and injuring hundreds more.
It was the worst single terrorist atrocity on British soil.
The photo of Paul Dadge helping then 25-year-old Davinia Douglass dominated the front pages of newspapers.
But Mr Dadge has always denied he was a 'hero'. Speaking to the BBC shortly after the terror attack, he said, "I am not a hero, not at all.
"I just happened to be on the spot and I did what I could to help."
An ex-firefighter who shot to fame in the wake of the 7/7 bombings has been selected to fight the Cannock Chase seat for Labour at the general election.