Southwark Council has confirmed plans to invest £1 million to help expand the Tate Modern art gallery.
The local authority has committed to providing the funds, providing the gallery finds the rest of the money needed for the expansion.
Plans are in place to extend the south of the site, with the derelict oil tanks of the former power station becoming the foundation of the large extension project.
Designed by architects Herzog and de Meuron, the project will increase the building's capacity by 60 per cent.
The gallery opened in 2000 and attracts around five million visitors a year.
Councillor Mark Williams, cabinet member for regeneration and new homes, said: "Tate Modern has played a vital role in the regeneration of Southwark over the last 20 years, bringing millions of visitors to the borough and generating 1,500 new jobs and £100 million for the local economy in its first year alone.
“As a direct result of the extension, the new Tate Modern will continue to drive investment and tourism to our borough and be a focal point for a second wave of economic growth already underway.
"In addition the new Tate Modern will provide new education facilities and experiences for over 650,000 people every year, and we will be at the forefront of ensuring our residents feel the benefit of this."
Southwark Council has bought Courage Yard on Shad Thames, near Tower Bridge, which it will redevelop to generate income for frontline services.