The banking giant wants to build the £3bn project on a riverside site, and is reported to be hoping the build will exceed the Shard in height although Canary Wharf building heights are capped to allow for safe flight paths to London City Airport.

Designed by Foster + Partners, the tower mirrors the firm’s ambition at its global HQ at 270 Park Avenue in New York.

The new European headquarters will be built on Riverside South, which JP Morgan bought in 2008, but shelved plans following that year’s global financial crisis.

This site already has foundations and basement levels in place, which bankers argue would shorten the construction timetable should the project proceed.

Designs are being kept under wraps until they are finalised, including the height.

Construction would take around six years, with Canary Wharf Group acting as co-developer and Sir George Iacobescu advising the bank.

While the new tower comes forward, the bank will refurbish its existing 25 Bank Street base.

A study commissioned by JP MorganChase estimates the combined building and refurbishment programme could pump £9.9bn into the UK economy and support more than 7,800 jobs across construction and the wider supply chain.

The scheme has been welcomed by the Chancellor, who called it a multi-billion-pound vote of confidence in the government’s growth plans, and by the Mayor of London, who said the decision underlines the capital’s global financial clout.

The building will feature trading floors, roof terraces, wellness facilities, cafés, cycling infrastructure and upgraded public realm. It forms part of a wider push by the bank, which recently committed up to £350m to expand its Bournemouth campus.

Jamie Dimon, Chairman & CEO of JPMorganChase, said: “London has been a trading and financial hub for more than a thousand years, and maintaining it as a vibrant place for finance and business is critical to the health of the UK economy.

“This building will represent our lasting commitment to the city, the UK, our clients and our people. The UK government’s priority of economic growth has been a critical factor in helping us make this decision.”

JPMorgan is also set to roll out its Security & Resiliency Initiative in the UK, part of a global $1.5tn 10-year programme to support investment in defence, energy, critical minerals and advanced manufacturing.

Once the new Riverside building is delivered, staff will be consolidated between the new HQ and 60 Victoria Embankment, with the bank set to review future options for 25 Bank Street.