The machine will be installed at Newsfax's Stratford facility "as soon as possible", allowing the company to print short-run newspapers.
Newsfax said that it is targeting run lengths of 100-1,000 newspapers and will consider any publications, with both UK and foreign titles a possibility.
Managing director Tom Johnson said: "The digital installation is planned to complement the service we offer to our higher volume publishers."
It also opens the door for Newsfax to investigate micro-zoning and personalised newspapers, should any UK publishers wish to go down that route.
The installation came about through one of its investors, Malcolm Miller, who is also chief executive at Miller Newsprint Malta (MNM). MNM has been printing British and foreign newspapers in Malta for ex-pats living in the country.