The airport has revealed images of what passengers can expect once the development is completed.
London City’s new terminal design will include new shops, restaurants and bars, with the aim of showcasing the best of the city.
The refurbishment will also lead to a new look for the airport’s check-in, security and departures lounge, baggage claim, dedicated arrivals area and gate lounges, with more space and better facilities for passengers.
The terminal, which currently covers an area of 17,000 square metres, will cover a total area of 68,000 square metres by 2022.
The £500 million development started in 2017 and is expected to complete in 2022. In addition to the new terminal facilities, the airport will create eight new aircraft stands and a parallel taxiway, next to the runway.
The airport expects to welcome five million passengers in 2019 for the first time. Numbers are currently capped at 6.5 million.
Once the transformation is complete, the airport will be capable of accommodating a further two million passengers.
Robert Sinclair, chief executive of London City, said: “We welcome millions of visitors to London every year right into the heart of London, and we want to create an unforgettable first and last impression of London, showcasing the very best of the capital and demonstrating it is open for business and thriving.”