The country's largest training and enterprise council is to be formed by joining two London TECs - the first merger since the launch of the network.
The still-unnamed super-TEC, set to be running by next April and with an annual budget of Pounds 50 million, will result from the union of CENTEC and CILNTEC, which cover central London, including Westminster and the City.
The merger, on the table for two years, will go some way towards fulfilling the Government's unofficial aim of cutting the number of London TECs. The merged TEC will bring the total down to seven. Ministers are believed to want five.
For some colleges in the super-TEC area, the change will mean they are dealing with a third TEC in three years. Those in south London were forced to absorb substantial losses after South Thames TEC called in the receivers in late 1994, leaving Pounds 5 million in liabilities.
The merger partners say they aim to achieve a greater voice in London's future and provide a more co-ordinated response to its needs. The London TECs this month published a profile of the capital, identifying skills shortages.