Defence giant Babcock has announced plans to relocate more than 2,000 workers from its Devonport Royal Dockyard facility to Plymouth city centre.
The company, which plays a crucial role in supporting the º£½ÇÊÓƵ's nuclear submarine programme, said the move was part of its approach to supporting regional regeneration across the º£½ÇÊÓƵ.
No date or timeline has been announced for the relocation but Babcock is planning to turn a disused building into new workspace for employees, according to the BBC.
The staff who will be moved will be from the company's Devonport support functions, the business added.
David Lockwood, chief executive of Babcock said: "Our ambitious blueprint for Plymouth is a model for regional regeneration and one we are committed to delivering.
"As a strategic partner to Government, for every pound spent on defence, our community of passionate people are delivering back, and we value the things that matter to our customers, colleagues and communities.â€
Tudor Evans, leader of Plymouth City Council, said he was "absolutely thrilled" by the news.
"This is a really significant moment for Plymouth," he said. "Babcock's plans to bring over 2,000 people into the heart of our city centre will have a huge ripple effect - not just in terms of jobs but in how people live, eat, shop and enjoy the city.
"It means more people living locally, supporting our cafés, restaurants, shops and cultural venues and helping to create a vibrant city centre economy.
"Alongside the new Capability Centre, the dedicated Centre for Engineering and Nuclear Skills and the facilities within the Freeport, this is a real show of confidence in Plymouth's future."
Last week, Babcock reported a significant surge in profits for the latest financial year, with Mr Lockwood hailing a "new era for defence".
The FTSE-100 firm saw an 11% increase in revenue to £4.8bn. Operating profit jumped by over 50% to £364m, despite the loss of a £90m contract, as reported by
