The deal, which is biggest office prelet in the city centre for 20 years, will see building owners Town Centre Securities modernise and build a 6-storey extension to the 1960s building.

The new Merrion House will offer approximately 170,000 sq ft of office space, including 50,000 sq ft in the new extension.

This new building will feature a new integrated one stop centre on the ground floor, offering the public access to all the main council services.

Leader of Leeds City Council Councillor Keith Wakefield said the deal to consolidate council offices in one building would bring savings estimated at £15m a year and drive forward the regeneration of the newly-created Arena Quarter.

Edward Ziff, Chairman of Town Centre Securities, said; “To be able to bring all the council operations together at Merrion House in what represents the largest City Centre office deal in over two decades, is another achievement for the Arena Quarter.

“With the continued investment into the Merrion Centre, the area is transforming itself into one of the City’s most important destinations and this latest deal is testament to that. We are looking forward to creating a superb new facility for the council to enable its long-term strategic goals.”