A new 1.5 billion US dollar fund to help support the global fight against malaria and other infectious diseases was announced Sunday by British Chancellor of Exchequer George Osborne and Microsoft founder Bill Gates.

The new Ross Fund will be used to support the global fight against malaria and other infectious diseases. The fund is named after Sir Ronald Ross, the first ever British Nobel Laureate who discovered that mosquitoes transmit malaria.

The British Treasury said the announcement is part of a fundamental restructuring of Britain's aid budget to be set out in the House of Commons on Wednesday as part of the government's annual spending review.

The mission to eliminate malaria builds on commitments Osborne made on a visit to Uganda, where he promised to spend hundreds of millions of dollars to help the war against the disease.

The 1.5 billion US dollar initiative will include a 456 million US dollar million package focused on malaria and other infectious diseases. This will include an eradication of malaria implementation fund, support for research and development into products for infectious diseases and the development of new drugs, diagnostics and insecticides for malaria, TB and other infectious disease resistance.

It will also fund work to target diseases with epidemic potential, neglected tropical diseases, and diseases with emerging resistance.

"Our commitment to overseas aid is important to promote our national security and interests and around the world. That includes the fight against malaria," said Osborne.

"One billion people are infected with malaria and 500,000 children die from the parasite each year. Eradicating malaria would save 11 million lives so today's announcement is an important step to help tackle this global disease." Osborne added.

Seattle-based Bill Gates, Co-Chair of the Bill and Melinda Gates Foundation said: "We are proud to be partnering with the Chancellor, the British people, and leading research institutes and universities around the UK in this endeavour to end malaria and combat neglected tropical diseases and future pandemics."

According to Britain's International Development Secretary Justine Greening, Malaria still causes one in 10 child deaths in Africa and costs the continent's economies around 8 billion pounds (12.15 billion US dollars) every year.