Google is to open an incubator business unit for technology start-ups in East London's Tech City, the government's initiative to create a UK tech hub modelled on Silicon Valley.
Google will open amenities in the seven-storey office block to organisations supporting technology start-ups. It also plans to host a programme of events, including training workshops and product demonstrations.
The government created Tech City in November 2010 in London's Old Street and Shoreditch. The intention was to build on the area's existing technology start-ups, which have earned the area its nickname of "Silicon Roundabout".
The news follows Twitter's recent announcement to locate its European base in Dublin, rather than East London. The move raised fresh questions as to whether the government would fulfil its ambitions to make Tech City the European technology capital.
David Singleton, engineering director at Google UK, said: "East London is already home to hundreds of innovative British start-ups, and has huge potential for economic growth and new jobs over the coming years."
"Google plans to open up the space to other organisations that support technology entrepreneurs, working together to provide a launchpad for new London-based start-ups and developers," Google said in a statement.
The new deal will not affect the location of Google's main London headquarters in Victoria.