Nine Entertainment and former Fairfax staff will share a home following a deal which brings them together in a new $1.2 billion tower in North Sydney.

The move will allow journalists from mastheads including the Sydney Morning Herald and the Australian Financial Review to move from Pyrmont to join Nine staff who are moving from the TV company's historic home in Willoughby.

Neighbours in the tower will include SAP and Microsoft.

The former Fairfax staffers will have a spell in a building owned by Google, which had been Channel 7's national corporate HQ until last year, before shifting across the harbour.

Plans now involve a 25,000 m2 lease at the landmark 1 Denison Street office, instead of the 18,500 m2 originally planned.