The Museum of London has been awarded £200,000 ($314,453, €281,571) to set up an architectural competition to choose a practice to design its new home at nearby Smithfield Market.

The Greater London Authority (GLA) designated the funds as part of its backing for the proposed relocation, on behalf of London’s mayor, Boris Johnson.

The museum will now appoint an architect and other consultants to develop the design of the new museum to concept stage. A detailed strategic brief outlining space requirements, and a procurement and management plan to manage the new museum project, will be completed by October 2015.

Although two other options were considered – improvements to the museum's existing Powell & Moya-designed building and developing a new building on the existing site, the Smithfield relocation was ultimately deemed the most viable.

Visitor figures at the Museum of London have doubled in recent years and continue to grow. The move is expected to create an additional 5,000sq ft (464.5sq m) of space, with the aim of reaching two million visitors per year.

GLA will have a joint say in the project, alongside the museum and the City of London Corporation through an oversight board.

The move to the Smithfield site, where a livestock market has been located for more than 800 years, is scheduled for 2021.