The Design Museum's plans to move to London's vacant Commonwealth Institute building have been handed a boost by the Royal Borough of Kensington and Chelsea (RBKC).

A £2.6m loan has been offered by the local authority in order to help the attraction ensure its ambitions to relocate from its current site at Shad Thames are financially viable.

RBKC said the short-term loan aims to help the Design Museum meet a planning obligation that requires 70 per cent of development funding to be in place before work can commence.

The Conran Foundation has donated £7.5m towards the scheme, while the Heritage Lottery Fund has also earmarked support, but the rest of the funding is tied up in its Shad Thames site.

RBKC leader Sir Merrick Cockell said: "If the Design Museum chooses to take this offer up, this is a low risk, short-term loan with a potentially big return."

John Pawson has been appointed to convert the interior of the vacant building, while a vision for the surrounding development has been drawn up by Rem Koolhaas' OMA.

Image: The museum's current location – Design Museum/Luke Hayes