The University of East London will get £6.75 million as part of the government's community plan for the Thames Gateway, recently announced by deputy prime minister John Prescott.
The funding is part of the London education and innovation package, which aims to create hubs for key skills, business innovation and technology transfer, and aims to promote business activity and local participation in higher education.
The university will spend £4 million expanding its Dock-lands campus, £2.5 million developing the Knowledge Dock Centre and a further £250,000 creating an online network to promote the expertise and facilities provided by higher education institutions to local businesses.