The deal will see both sides stump-up £150m each to secure the 5.25 acre site and transform it into a major mixed-use development.

Canary Wharf Group will act as the Construction Manager for the project and will also be Joint Development manager with Qatari Diar.

The deal represents Canary Wharf’s second major move into central London following its joint venture with Land Securities on the “Walkie Talkie” in the City.

Detailed plans for the Shell Centre site will now be drawn up to contain office, retail and residential space built around the famous 1950s, 27 storey tower in the middle of the Shell Centre which will be preserved and retained by the oil giant.

George Iacobescu , Chairman and Chief Executive of Canary Wharf Group plc said: “It is both a privilege and a great responsibility to be involved in this redevelopment project which will re-energise a key part of this area of London.

“We look forward to working with our partner Qatari Diar, the local community and with Shell to enhance the London economy and the vibrancy of the South Bank.”