US tech major International Business Machines (IBM) has said it is setting up a new service centre in the UK, creating 300 new tech jobs over the next three years.

The company said the new centre, which would serve its UK-based clients, will be located in the City of Leicester.

"This investment in job creation aims to inspire the next-generation workforce from local technical colleges and universities who will deliver the technology skills needed to drive business innovation in the UK," said David Stokes, CEO of IBM UK and Ireland.

"The new centre will help to position Leicester as a hub for global businesses and reflects IBM's long-standing commitment to developing skills and providing high-value technology services to business across the UK."

The centre offers services including high value application development and maintenance, test and systems management.

"This is excellent news and a significant achievement for the city council in terms of our economic regeneration of the city," said Leicester's City Mayor, Sir Peter Soulsby.

"We have worked very closely with IBM, and I am delighted that they have now chosen Leicester for their UK base. We welcome them to our city, along with the opportunities they bring for our graduates and young people to gain the vital technology skills that businesses need in today's competitive market."

The new centre will be part of IBM's globally integrated capability network which delivers technical and industry expertise to a wide range of public and private sector clients in Europe and around the world.

There were reports that the company was preparing to axe more than 111,000 of its staff in the largest corporate jobs cull in history.

While IBM has strongly denied the reports, staff say they have been receiving requests from their managers for one-on-one meetings