The Charity Commission is to sign a £5 million deal to convert its paper audit trail to an electronic document and records management system.
IT services group Parity has been awarded sole preferred bidder status by the commission for the five-year development and support contract.
The project will see the regulator comply with Public Record Office standards, and freedom of information and data protection requirements.
The work will reduce the manual administration required for each charity enquiry or registration and is intended to improve reporting procedures.
The contract also involves the implementation of online customer services through updating the commission's web site.
Ian Miller, chief executive at Parity, said: "We are pleased to work with the commission on its electronic records and document management system - a topic at the top of the agenda for most government organisations."