This year’s ball will be held in the usual place, but organisers need to find a new location for the event next year.

”There are no plans for 2013 yet,” said Major-Domo Anne Puonti. ”We’ll consider it and announce the location later.”

The ground has sunk around seven centimetres under the palace, causing some small cracks to develop in the building’s walls.

Renovation work will begin after Independence Day, and is planned to last for around two years. Builders will fix the building’s foundations, which are in a poor condition, and improve access and security.

During the renovation, the president will use working space in the Helsinki mayor's premises on nearby Aleksanterinkatu.

The building, which is located by Helsinki’s South Harbour on Esplanadi, was last renovated in the 1970s. That also necessitated a re-location of the Independence day ball, which was held at Finlandia Talo in 1972.

The tendering process for the latest renovation will take place over the summer, and a cost estimate will be made in the autumn.