Property experts yesterday predicted that the US embassy in Mayfair could fetch more than £300m if and when it went on the market. Financial Times

The building in Grosvenor Square would be likely to attract ferocious bidding from UK property companies, Middle Eastern money, Irish investors and others.

The US government said yesterday about a possible sale that 'no options have been ruled in or out'.

Cushman & Wakefield has been instructed to find new premises for the embassy. It is also understood to be seeking a buyer for the former US navy building at 20 Grosvenor Square and 1 to 7 North Audley Street. The 100,000 sq ft premises could fetch around £200m.