DEVELOPERS behind the rejected 17-storey hotel scheme for Haymarket are expected to produce new plans for the site before the end of the month.
Irish firm Tiger has opened fresh talks with the city council over a new masterplan for the former Morrison Street goods yard, which has lain empty for more than 40 years.
Tiger's £250 million proposals, which also included offices, shops and rest
aurants, were thrown out after ministers accepted the findings of a public inquiry which stated the hotel would spoil Edinburgh's skyline.
There had been speculation the company would pull out of developing the site after the decision.
But a spokesman for Tiger said: "We remain committed to the site. We're now working hard with the council and other stakeholders to find a new way of transforming the derelict site into an exciting part of this historic city."
Architect Richard Murphy has already held initial talks with Tiger about a new scheme.
Senior councillors said they were "optimistic" a new scheme would be viable.
City planning convener Jim Lowrie said: "We still want a five-star hotel to go ahead there and we are in favour of some kind of landmark. The inquiry reporter was not against the whole development; it was the height and bulk that was the major concern.
"We don't think the scheme is dead by any means."