The mobile phone maker's largest North American office is already located in the city and employs 1,200 people. The company will now move its mobile phone browser division to that location on West Randolph.
In addition to moving 150 jobs, the company also has plans to hire another 100 people in Chicago.
Mayor Rahm Emanuel says the city is becoming the wireless capital of the country.
"It is the ability to find talent here in the city of Chicago that was the convincing case that it was the right move," said Emanuel.
The mayor's office says there was no financial incentive involved in Nokia's move from Itasca to Chicago.