Education secretary Michael Gove has appointed Lord Bew to chair the review.
The move comes after a quarter of schools boycotted the tests amid concerns from teachers that they restricted children's education.
Christine Blower, general secretary of the National Union of Teachers, said: "It is encouraging that the government has recognised we need an alternative to the present assessment regime.
"For too long children’s education has been blighted by an assessment regime which limits the curriculum and encourages teaching to the test. We need assessment that is meaningful, more accurate and focuses on what children can do."
Mary Bousted, general secretary of the Association of Teachers and Lecturers also backed the review but believes its scope should be widened to look at the whole curriculum and a range of alternative ways to test academic ability across all ages.
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