Building Digital UK (BDUK) will be integrated into the Department for Science, Innovation and Technology (DSIT) on 1 November 2025.
BDUK is responsible for improving broadband and mobile coverage in hard-to-reach parts of the UK.
The integration is part of the government's review of arms length bodies.
BDUK will continue its same work, while becoming a directorate of the department and there are no changes to BDUK contracts as a result.
£1.9 billion was allocated to Project Gigabit and the Shared Rural Network at the last Spending Review. 99 per cent of premises are expected to have access to a gigabit-capable connection by 2032.