Technology Minister Gordon Rich-Phillips said the investment was the latest in a long line of technology companies that had chosen to set up shop in Melbourne.
"Victoria offers global players a competitive business environment, access to a skilled workforce and a dynamic technology industry," Mr Rich-Phillips said.
"We are the ideal location for digital agencies with a strong, creative technology workforce and many large and small organisations that are receptive to enhancing their online, e-commerce, cloud and mobile presence.
"Last financial year the Victorian Coalition Government helped to facilitate more than 1,300 jobs in Victoria's information and communication technology (ICT) industry.
"Our $85 million technology plan is supporting the growth of internationally competitive and recognised ICT businesses in Victoria," Mr Rich-Phillips said.
Reading Room provides digital communications services to clients around the world with a staff of more than 200 working from offices in the UK, Singapore and Australia. It's partners include Adobe, Microsoft, Netbiscuits, OBS, SDL and Sitecore.
Reading Room Australia CEO Sarah Vick said the company was very excited to be taking the next step in establishing an office in Melbourne.
"We see Melbourne as an important hub for the growth of our Asia Pacific business. Melbourne presents a number of opportunities for us to work with a wide spectrum of clients from large enterprise to government and not for profit organisations," Ms Vick said.
"Having a Melbourne office will also allow us to provide services locally to our existing clients including Melbourne Business School, GHD and Regain Services.
Reading Room global CEO Margaret Manning said Melbourne was an excellent location for its Australian growth.
"Melbourne offers a strong collaborative business environment with significant opportunities for Reading Room. Being in Melbourne will also enable us to better respond to our customers' needs," Ms Manning said.