The Transport Museum of Hungary is building a new home in Budapest and has chosen New York architecture practice Diller Scofidio + Renfro to design it, following a competition.

The firm beat out rivals including AL_A, Caruso St John, David Chipperfield, and Foster and Partners among others for the museum's new home, which will be based on a former rail maintenance depot site in the Kobanya region in east Budapest.

The museum is planning to double its annual visitor numbers to 350,000 with the move. Its new home will feature exhibition spaces and learning areas.

Founded in 1899, the transport museum is currently based in central Budapest and showcases a variety of trains, buses and automobiles.

"The winning entry extends the diesel hall with a new space that connects the interiors and the outside areas with a floating roof structure, under which exhibition spaces and a multi-level urban public square are housed," said the competition organisers.

"The new structure allows a glimpse into the museum like an open drawer, attracting viewers from the streets and transportation hubs nearby.

"The community places offer a characteristic and attractive view not only for the visitors but for passers-by as well.

"The new hall highlights the details of the existing industrial heritage such as the characteristic interior spaces, and the rooftop level provides an excellent view of the site and the surrounding area."