The two-phase plan will see the store grow both its retail and dining offering, eventually leading to the launch of a new Japanese casual dining concept towards the end of this year.
Taking over the former Busaba site on Leicester Square, Japan Centre will expand its ground floor space by 7,000sq ft.
The new space will build on the existing food hall, which consists of three different ‘specialist’ rooms respectively dedicated to tea, sake and miso; a central courtyard eating area; and several open kitchens.
Alongside a greater retail range of 'customer favourites' and cooking essentials, the expansion will also see the opening of a new fresh sushi counter.
Founded by Tak Tokumine, Japan Centre opened its first London site near Piccadilly Circus in 1976.
Described as 'London’s only dedicated Japanese food hall', the flagship Panton Street store opened in 2017.
Japan Centre also operates sites at Westfield London and Westfield Stratford.
Last year, Tokumine closed his London restaurant Sakagura in Mayfair and subsequently opened ramen bar Heddon Yokocho on the same site.
The entrepreneur is also behind the 13-strong Shoryu Ramen chain.