The 360-bedroom hotel is set to open in the iconic Sea Containers House on London's South Bank, overlooking the River Thames and is planning to include a restaurant and ground floor and rooftop bars.
It will be Morgans' sixth hotel to open under the Mondrian brand and the first to open in Europe.
"We are very excited to announce our first Mondrian hotel in Europe," said Morgans Hotel Group chief executive Michael Gross. "Sea Containers is an exceptional property in a key gateway city that will allow us to serve our guests for business and pleasure throughout the year."
Morgans Hotel Group, operator of St Martin's Lane hotel and The Sanderson in London is keen to expand the Mondrian brand across the globe. It currently has three hotels in the US operating under the brand and is also set to open branded hotels in Doha, Qatar and in Nassau, The Bahamas in the next two years.
Gross said: "This is the third new management agreement for a Mondrian-branded hotel that we have announced this year. We believe the Mondrian brand has unique appeal and significant potential for global expansion."
Morgans Hotel Group currently operates 12 hotels in the US and the UK.
It's latest project will form part of the major refurbishment of Sea Containers House, which was originally designed as a hotel in the 1970s but opened as offices in the 1980s. Developers Archlane plan to redevelop the building to host a hotel, office space and restaurants and cafes.