The Transport for London has secured £5m from the Department for Transport's (DfT's) Green Bus Fund.
The majority of the money will be used, alongside the existing budget, to buy 90 hybrid buses and bolster what is already Europe's largest fleet of green buses.
The DfT's Green Bus Fund was set up to support bus companies and local authorities to introduce low-carbon vehicles that will have a positive effect on the environment.
Mike Weston, London Buses Operations Director, said, "London buses may be red on the outside but they are increasingly green on the inside. We will continue to increase our hybrid bus fleet and will seek, where possible, to trial exciting developments in zero emission electric technology."
By 2016 there will be more than 1,700 hybrid buses operating across the Capital.
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