Merton has been given £1.5million to build a new centre aimed at challenging ageism.
Merton Council successfully bid for the funding from the London Development Agency (LDA) to build the country's first 'intergenerational centre'.
The centre will provide IT facilities for the young and old and offer reading sessions and arts, crafts and drama lessons.
Different age groups will also be able to take part in a variety of sports.
Work has already begun to clear the site - a disused youth centre and motorbike track next to a primary and secondary school in Mitcham.
Planners aim to have the new building completed by the middle of next year.
The LDA hope the new centre will help increase community spirit, reduce crime and challenge ageism.
London's Mayor, Ken Livingstone, said: "I want the first intergenerational centre in London to be a resource for all age groups, old and young, for families and for individuals.
"The new centre's aim is to break down barriers between people of different generations, challenge ageism and generate a sense of shared purpose bringing together and benefiting all members of the community."
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