Leicester City Council has revealed plans to take out a 125-year lease on an empty office block in the city's Haymarket shopping centre, in order for it to be converted into a 67-bedroom hotel.

The council has agreed a £10m funding package that would see it redevelop the property – known as Haymarket House – and then lease the premises to a hotel operator for around £200,000 a year.

Included in the £10m would also be funding which would see improvements being made to surrounding infrastructure, including parking for the hotel.

It is believed that the council will offer the hotel to operators on an initial 25-year sub-lease, with an option to extend it for a further 50 years.

The hotel was originally given the green light last year, but the development has stalled. Haymarket House has been empty for a decade.

According to Leicester mayor, Sir Peter Soulsby, the development would attract more visitors to the city, while providing a "tremendous amount of regeneration" to the Haymarket area.

"This is a high-profile part of our city centre and it is vital that we continue to invest in it," Soulsby said.