Google is to provide multi-million-pound office space and assistance for developers and startups near London's Silicon Roundabout to boost government's plans to build a Tech city in the capital.

The company has signed a lease for a seven-floor building in the Old Street area, which will be a shared space for the growing companies.

The move is in accordance to Prime Minister David Cameron's plans to create a rival to Silicon Valley in November last year.

The plan is backed by £400m in government funding and a host of technology firms including BT, Cisco, Facebook and Google, as the Guardian reports.

Finding a suitable building is the first major step, and we hope to announce more details about the organisations we'll work with and how they will use the space in the coming months, said David Singleton, Google UK's engineering director.

Google said the Bonhill street office would be used by the company for some events, so it would be for the others to fill the building with firms and new jobs.