Merlin Entertainments has unveiled plans to relocate its London Dungeon attraction from its current location on Tooley Street, near London Bridge, to County Hall on London's South Bank.

The potential move, approved by Lambeth Council, means that the popular London Dungeon will operate adjacent to Merlin's existing Sea Life aquarium and London Eye attraction.

A spokesperson for Merlin said: "The South Bank is a high visitor traffic area and grouping the Dungeon with the two existing popular attractions could potentially offer considerable operational and commercial benefits for both the company and visitors.

"This is however only one preparatory step and no final decision to relocate has yet been taken by Merlin."

The group is currently in talks with UK rail infrastructure owner Network Rail, which is currently drafting a long-term capital investment plan to redevelop London Bridge station and the surrounding area - including Tooley Street - as part of the capital's future Thameslink programme.

Merlin is looking to minimise the disruption of any such works to its business, with the relocation of the Dungeon being one of the options.

• In 2009, Merlin was awarded "substantial" compensation after an out-of-court settlement was reached with rival scare attraction operator London Bridge Experience (LBE). Merlin had accused LBE for "breaching intellectual property rights". LBE opened in early 2008 just metres from the London Dungeon site.