Rockstar Toronto will be opening a new and larger office in Oakville, Ontario.
2K is seeking to expand its development capabilities in the region by adding fifty new members to the team.
While financial details were not disclosed, the move is backed by the government.
"Rockstar Games' decision to expand its Toronto studio demonstrates the confidence in Ontario's leading-edge digital gaming industry," said Brad Duguid, Minister of Economic Development and
"By providing financial support and tax incentives to help companies grow, we maximize Ontario's competitiveness in the global economy and support job creation,"
The company also revealed it would be relocating its Vancouver studio to the new location, and the 35 man team would be given the option of joining the Toronto office or another Rockstar studio.
The transition will take place over the next six months.
"Expanding Rockstar Toronto and bringing our Canadian development talent together under one roof underscores our commitment to building world-class teams that can make the kind of groundbreaking entertainment experiences Rockstar Games is known for," said Jennifer Kolbe, Vice President of Publishing and Operations for Rockstar Games.
"We believe a single Canadian team will make for a powerful creative force on future projects. We plan to add more than 50 new positions to our combined Canadian team, and are pleased to be entering into this strategic partnership with the Ontario government."