The Association of Tennis Professionals (ATP) has announced that the annual Tennis Masters Cup will be moving from the Chinese city Shanghai to the O2 Arena in London, UK.

The tournament – which includes the world’s top eight male players and the top eight men’s doubles teams compete for more than US$4.5m (£2.2m) – will also be renamed as the ATP Tour Tennis Finals.

Etienne de Villiers, executive chair of the ATP, said: “The world’s best tennis players coming together in the iconic setting of the O2 Arena, to decide who will be crowned ATP Tour Finals champion, is simply and irresistible and potent mix.

“The ATP visits over 30 countries, so having our end of season finale in such a diverse city could not be more appropriate.”

The 02, which is owned by AEG, will have a hard court installed in the centre of the 20,000-seat arena, and will also feature a kids’ zone hosted by the Lawn Tennis Association.

Philip Beard, chief executive of the O2, said: “The arena was designed to host world-class music and sports events and we’re thrilled that it will be the new home for the ATP’s end of season finale.”

Roger Federer, the current Masters champion, added: “I love coming to London for The Championships each summer, so I am delighted that the end of season championships will be moving to one of my favourite cities in the world.”

The event has previously been held in several cities, including New York – where it stayed from 1977 until 1989 – and Frankfurt. It has been held in Shanghai since 2005, where it will remain until the tournament moves to the UK.