It is hoped the new building will be completed in three year's time

The new centre - which the company hope will be finished in 2008 - will house state-of-the-art studios, along with community and education spaces.

The contemporary dance company is currently located in cramped premises in Chiswick, west London.

Rambert artistic director Mark Baldwin called it an "exciting moment" in the company's history.

He welcomed the promise of "a real purpose-built home for the company", calling it "a laboratory to experiment in, the means to reach into the community we serve".

Rambert's move will be symbolic of our importance in the cultural life of this country Mark Baldwin, artistic director

"We have outgrown our premises in Chiswick, and the current building is hampering our efforts to remain at the forefront of modern dance.

"I strongly believe that Rambert's artistic mission will be greatly aided by Rambert's proposed move to the South Bank site."

Rambert is Britain's oldest dance company, established in 1926 by Marie Rambert, five years before the Royal Ballet came into existence.

Rambert has gained a reputation for creative modern dance

The late choreographer Sir Frederick Ashton created his first work for the company while still a student, at the age of 21, and went on to become founder choreographer of the Royal Ballet.

The touring company aims to provide a showcase for British choreography and appears in theatres across the UK and overseas for six months of the year.

Rambert's new six-storey building will be erected behind the National Theatre.

It will be connected to other cultural attractions, including the Design Museum, Tate Modern and Shakespeare's Globe, by the Thames River Walk.

Mr Baldwin added: "The South Bank is Britain's leading arts community, and Rambert's move there will be symbolic of our importance in the cultural life of this country."