The project has been paraded around several contractors, including Kier and Osborne, but none were able to agree a final price for the job.

A spokesperson from U+I said: “We are in the process of agreeing a build contract with a contractor.

“We expect to announce our construction partner on Circus street shortly.”

Brighton University is also backing the Circus Street Development, which has been on the stocks for nearly a decade and was delayed initially due to the economic downturn following the banking collapse.

More recently rapidly rising costs in the construction sector have prevented a deal being signed with other contractors and prompted a rethink on the project.

The University of Brighton decided to put plans on hold for a new library building at the site at the start of the year, but remains committed to 450 new student rooms on the site.

U+I is understood to be now planning to commence main construction work later this year.

The full scheme includes a new home for South East Dance, 142 new homes, student accommodation and 38,000 sq ft of new office space.