The US embassy has signed a deal to move to Ballymore’s Nine Elms site in Battersea, south-west London and will sell its existing site.
Ambassador Robert Tuttle, who has led the search for a new site, said: ‘This has been a long and careful process.
‘We look to all our options including renovation of our current building in Grosvenor square. In the end we realised that the goal of a modern, secure and environmentally sustainable embassy could best be met by constructing a new facility.
‘I’m excited about America playing a role in the regeneration of the south bank of London.’
In August Property Week revealed that Battersea was one of the top options for the embassy.
The move is a conditional agreement on approval of the US congress and local planning authorities.
The embassy will buy the five acre site from Ballymore and develop it themselves.
It is still possible the embassy will remain at the current location if they are any problems with the move.
The leasehold that the American embassy has on its building will be brought to the market almost immediately. Grosvenor owns the freehold.
There will be an international design competition for the design of the embassy.