The Reading Room is being used to house the Terracotta Army display
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The British Museum is to create a new space for visiting exhibitions to ensure the best of the world's treasures are seen in London.
The museum is seeking private funding for the area, which was recently vacated by British Library staff.
Museum bosses decided to create the new area after they had to turn down a Tutankhamun display because there was not enough room to house it.
Another space was recently converted to house a Terracotta Army exhibition.
Record
Museum director Neil MacGregor, who announced the plans at its annual review, said: "The new space should allow us to be part of a much larger share of international exhibitions.
"It will enable us to bring to London the kind of exhibitions that we need to bring from all around the world."
He added that recent Michelangelo and Persia exhibitions had demonstrated visitor numbers would be boosted if they acquired the space to show larger displays.
A trend to showing larger exhibits as well as painting also necessitated the need to increase display space, said Mr MacGregor.
The museum's Reading Room has been converted to house The First Emperor: China's Terracotta Army exhibition in September, which has attracted 30,000 pre-booked tickets - a record for the British Museum.