Ubisoft Berlin has been approved for a city-granted subsidy of €1.58m ($1.85m).
The funding will be used to expand the studio, which has plans to create around 150 new jobs, according to German outlet Games Wirtschaft.
Ubisoft Berlin first opened in January of this year and is already working on the Far Cry franchise. At its start, the studio only had around 50 employees.
"Berlin is a magnet for creative minds and companies worldwide," said Berlin mayor and senator for economic affairs Ramona Pop, per a translation of a tweet. "I am delighted to be able to welcome one of the most renowned companies in the computer and video game industry at the Berlin location."
This is but one step in a much bigger planned expansion as the studio strives to become an epicenter for triple-A development in Germany. In an interview with GamesIndustry.biz earlier this year, studio manager Istvan Tajnay indicated that government support would be needed to grow the studio. This subsidy appears to be exactly what Tajnay was referring to.