Police bosses plan to move from Scotland Yard as they face making cuts of more than £500 million.
Deputy Commissioner Craig Mackey told the Mayor's Office for Policing and Crime that the force hopes to save around £6.5 million per year by moving to a smaller headquarters.
New Scotland Yard has been in its current location in Victoria Street since 1967 but Mr Mackey said it would take an investment of around £50 million to bring the building up to scratch.
He said that, as the force faces staff cuts, there will also be more and more space at the site, which is "an expensive luxury" in central London.
Mr Mackey said: "It's an expensive building to run and it's an expensive building to maintain and as we go through this change programme it's going to have space in it that we don't need. In central London that's an expensive luxury."
The force paid £124.5 million for the building in 2008 and it costs £11 million per year to run.
It is expected that the move will take around two years once approvals are in place.