The Museum of London has been awarded £200,000 ($314,453, €281,571) to set up an architectural competition for its new home at nearby Smithfield Market.

On behalf of London’s mayor, Boris Johnson, the Greater London Authority (GLA) designated the funds as part of its backing for the proposed relocation.

The museum will now run an architectural competition to appoint an architect and other consultants who will develop the design of the new museum to concept stage. A detailed strategic brief articulating space requirements, and a procurement and management plan to manage the new museum project, will also be completed in October 2015.

Although two other options – improvements to the Powell & Moya-designed building and developing a new building on the existing site – were considered, the Smithfield relocation was ultimately deemed the most viable.

Visitor figures at the Museum of London have doubled in recent years and continue to grow. The move is expected to create an additional 5,000sq ft (464.5sq m) of space, with the aim of reaching two million visitors per year.

GLA will have a joint say in the project, alongside the museum and the City of London Corporation through an oversight board.

The move to the Smithfield site, where a livestock market has been located for more than 800 years, is planned to be completed by 2021.