The nursery at Hazelbury Infants School received 75,000 towards a new building to provide 53 new places.
The nursery is located on the same site as a primary and middle school.
Children at the school and nursery (pictured) speak more than 35 languages among them, and 30 per cent have special educational needs.
Just over 2m has been made available through gap funding to enable the launch of 28 Neighbourhood Nurseries across the capital, where the costs of land and building work are prohibitively high. Average childcare costs are 25 per cent higher in London than the rest of the country.
Mayor of London Ken Livingstone said, 'The lack of affordable, good-quality childcare is a major barrier to taking families out of poverty and providing them with the skills, education and training needed in London's employment market.'