The Homes & Communities Agency will shortly publish a development brief to deliver an upmarket hotel on the southern part of Kings Waterfront in Liverpool.
The site was originally due to see residential towers built by David McLean and City Lofts but the collapse of both firms ended the plan.
Eliot Lewis-Ward, area director of the HCA, formerly English Partnerships, said: "Given the success of the Arena & Convention Centre in the northern half of Kings and the two hotels already there, Jurys Inn and Staybridge Suites, we think there is enough demand in the local hotel market for a high-end operator of at least four stars."
The 0.8-acre development plot will be marketed by a specialist hotel agent who has yet to be appointed. A developer is expected to be selected in the autumn.
Lewis-Ward said the site could accommodate two hotels, one high-end chain and one boutique for instance, but it would be up to developers to detail the number of hotels and bedrooms in their proposals.
The ACC and existing hotels have reported strong trading since they opened at the start of 2008.
The southern half of Kings will see later stages built out in separate phases. These could include family housing and a tram terminus if Merseytravel ever succeeds in funding the long-debated network. Merseytravel has a legal claim on part of the site for the tram station that expires in February 2010 and is expected to be renewed.