The Government Property Unit is looking at a Canary Wharf office block for a 400,000 sq ft requirement as it looks to consolidate departments and cut costs.
Advised by BNP Paribas Real Estate, the GPU is in advanced talks to sublease the space from Barclays at 20 Cabot Square, E14.
The move would come as the GPU seeks to shrink the government estate from 800 offices to fewer than 200 by 2023 and raise £5bn from property sales by 2020.
A Cabinet Office spokesman said no deal has been signed and he would not comment on what he said was “just speculation”.
He added: “As a general point, the Government Property Unit is striving to reduce the cost of the government office estate whilst improving the efficiency of the estate.
“For this reason we regularly receive proposals from the marketplace which, where relevant, we evaluate.”
Barclays, which is represented by CBRE, has been a tenant in the 558,100 sq ft building since 1996.
BNP Paribas Real Estate and CBRE declined to comment.
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