Networking and lobby group, Downtown Liverpool in Business, has been asked by the city council to help establish a promotional office in London.
Frank McKenna, chairman of DLIB, said: "Liverpool needs to get out there and express itself in the right way. It needs to capitalise on the cost benefits of being a provincial city.
"I am really pleased to see the council driving the embassy forward and excited by this opportunity. I think this is a further demonstration of [council leader] Joe Anderson's, and the new administration's determination to engage effectively with the city's private sector.
"The idea of a Liverpool presence in London is something that DLIB and our membership have been fully supportive of. It is a superb way for the city to showcase our business, culture and tourist offer, and is an innovative project with which we are proud to be associated."
Cllr Joe Anderson said: "Liverpool has taken great strides over the last 10 years, particularly with improvements to infrastructure, but we need to capitalise on developments and we must secure greater private investment to do so.
"I'm confident the Liverpool embassy initiative will help us do this and while DLIB is the lead partner, we welcome input from the whole business community, to move this project forward."
McKenna said he would be talking to other business leaders and organisations as part of the consultation process the city council is keen to undertake.