The King’s Head Theatre will move out of its Upper Street pub home and into a purpose-built space in the £400million Islington Square development next year.

The theatre, which helped launch the careers of Alan Rickman and Joanna Lumley, will temporarily move to John Salt Bar in Upper Street while its new 250-seat home is built.

Artistic director Adam Spreadbury-Maher said: “It’s an incredibly exciting time for us, and for artists and audiences at the King’s Head Theatre.

“The planned new space will celebrate our illustrious heritage, while securing our future for decades to come.”

The new venue will also include a smaller 85-seat studio alongside the larger theatre.

Islington South and Finsbury MP Emily Thornberry said: “It is great news that they are only moving a few yards and it sounds as though the new performance spaces will open up great new opportunities, while maintaining an intimate feel.”

Joanna Lumley, who has performed at the King’s Head, said: “It has always punched far above its weight. With these dazzling new planned facilities it can even offer comfort, hitherto pretty much undreamed of, and reliability – once, rain fell so steadily on the audience’s heads that they made umbrellas of their programmes.”