Canary Wharf is set to build the Walkie Talkie for Land Securities in a deal worth up to £350m.
Exclusive negotiations should be completed in 4-5 weeks, with construction starting this September.
A Land Securities spokesman said: “We have been in active discussions and hoped to have a deal done over the summer. We have never denied that Canary Wharf were one of those we were talking to.”
Construction of the Rafael Vinoly designed tower should commence this September.
News that Canary Wharf will partner Land Securities on the project, set to cost betweem £300m and £350m, will come as a disappointment to other contractors, as construction will be undertaken by its in-house firm, Canary Wharf Contractors.
The Walkie Talkie is the first of several previously mothballed projects in the City to get the official green light.
Others under consideration include The Cheesegrater set to be built by British Land.
Premium office space in the City is det to dwindle over the next three years, just as demand increases. It is this that is making developers re-assess projects stalled during the credit crunch.
Land Securities alone have detailed £2.5bn worth of potential projects across London, in response to the changing market.