Deutsche Bank is in talks to sign a new lease in London's Canary Wharf, a move that would keep the lender close to its existing office and add momentum to the financial district's revival.

The German bank is discussing taking space in the YY building on South Colonnade, a short walk from its 10 Upper Bank Street location, according to people familiar with the matter.

Deutsche will have Revolut as its neighbour if it opts for the YY. The fintech took the top four floors for its new headquarters and is moving staff in this month. The building, one of the most prominent in the east London financial district, now has Revolut's logo emblazoned across the top.

Owned by Quadrant and Oaktree Capital Management, the building features a rooftop terrace and Italian restaurant Barbarella following a recent refurbishment.

Deutsche's Upper Bank Street lease ends in 2028 and it has been reviewing options for its next move, the Financial Times reported in March. The talks are ongoing and no deal for space in the YY building is certain, the people cautioned.

As part of the review, Deutsche has also considered staying in its existing building with a smaller presence or decamping for another location in London.

The bank is looking to take on about 250,000 sq ft, the people added.

Deutsche opened a Canary Wharf outpost in 2016 in addition to its former City of London premises. It subleases 11 floors in law firm Clifford Chance's building at 10 Upper Bank Street, while its UK headquarters are at Moorgate in the Square Mile.

The decision to stay would be advantageous for Canary Wharf, which has been slowly bouncing back after high interest rates and concerns about the viability of the office in a post-pandemic world dented commercial real estate values.

The valuations of some of the estate's largest offices are rising for the first time in three years and footfall has increased as shops, restaurants and flats have proliferated in the area.

Some top tenants, including State Street and HSBC, have opted to shift their bases to the City, although HSBC has decided to keep a presence in Canary Wharf rather than leave entirely. Meanwhile, other financial services groups such as Visa are committing to the district, the FT previously reported.

JPMorgan Chase has also stepped up planning to develop an office tower on land it owns in the area, the FT reported.

Deutsche, Oaktree and Quadrant declined to comment.