The London Borough of Southwark is set to share IT services with two other London boroughs.
Brent and Lewisham councils agreed to share IT services last April, achieving savings of more than £1m to date.
Southwark is now set to join the partnership, ending its outsourcing contract with Capita.
Cllr Fiona Colley, Southwark's cabinet member for finance, modernisation and performance, said: 'This is a really exciting move for Southwark and we’re looking forward to taking back direct control of our IT, and working with two other councils that share our priorities and understand our business.'
Cllr Kevin Bonavia, the council's cabinet member for resources, added: 'We’ve saved £1m a year by sharing our IT services with Brent and have achieved real improvements to our services, especially in social care where staff can use mobile technology to help with their work.
'Our partnership with Southwark will improve our digital services for the public and deliver greater value for money as the government cuts our funding by 63% from 2010 to 2020.'
The final decision regarding the shared service will be taken by each of the councils’ cabinets this month.
