The Isle of Man's London office is to close next month, nearly five years after it began operating.

The corporate facility at No 1 Cornhill was designed to provide facilities for Manx companies working in the city.

Despite the closure, the Department of Economic Development says the Island will have an enhanced London presence, with the appointment of a head of UK business development to represent its interests.

The London headquarters opened amid great fanfare in January 2006, as an important shop window for the Island's goods and services in the capital.

It was also a UK base for Isle of Man Finance.

However, Minister for Economic Development Allan Bell says the private sector has been calling on government for the latest initiative, which he believes the business community will embrace.

The new head of business development will have a mandate to generate new business for Isle of Man companies and promote the Island to the key London market and the rest of the UK.

Negotiations are also at an advanced stage with several Isle of Man firms with a presence in London to create a network of offices, at which their clients could be introduced to ministers and government officials.