The design of the new tower, including the height, is still being discussed.
Construction is set to take six years and will begin as soon as it gets necessary approvals, JP Morgan said.
The decision to remain in Canary Wharf is a big win for the financial district, which struggled to retain tenants after the Covid-19 pandemic but is enjoying a rebound as companies increasingly demand that staff return to the office.
Last year, Reuters reported the banking firm was weighing options in London after outgrowing its existing 33-storey tower in Canary Wharf. It is now considering its options for that building.
The new headquarters will be built on Riverside South, which JP Morgan bought in 2008 – but shelved plans following that year’s global financial crisis.
It said an independent study estimated the project could contribute about £9.9 billion to the UK economy over the next six years – taking into account the building work for the development.