Earlier this year, Sheffield City Council signed a 60-year partnership with Sichuan Guodong Construction Group, which saw the firm pledge to fund developments worth approximately £220m over the next three years.

As part of this partnership, Guodong will spend the next 12 months exploring the feasibility of transforming Sheffield’s Central Library into a five-star hotel.

The firm is also looking to undertake a private residential scheme in the West Bar region of the city.

Councillor Leigh Bramall, deputy leader of Sheffield City Council, said: “There has been a huge amount of work to progress these projects and ensure that this investment will deliver real benefits for people in Sheffield.

“When we announced this partnership in the summer, we said that it had the potential to be transformational for the city, unlocking hundreds of millions of pounds for the regeneration of the city centre.

“Delivering a five-star hotel in the city is exactly what Sheffield needs to support the vibrant, growing city centre we need.”

Sheffield City Council estimates that the Central Library building would cost £30m to be brought up to the standards required in a modern facility.

The listed building was selected by Guodong due to its unique architectural features and prominent location near the city’s theatres and transport facilities.

If the hotel development is deemed feasible, Guodong has pledged to preserve the library’s Graves Art Gallery with full public access.

Meanwhile, the library itself would be moved to another site in the city centre.

Councillor Jack Scott, cabinet member for community services and libraries, added: “The truth is that the Central Library building is not currently fit for purpose or accessible, and would require tens of millions of [pounds] to house the fantastic modern library service that our city needs and deserves.

“We know that library services are hugely important to people in Sheffield, and they are to me too.

“I can give absolute assurances that no matter what the outcome here, there will always be a city centre library in Sheffield.”