BAM Construction had been in talks for the landmark building revamp, which includes construction of an extra floor taking it to seven storeys, but walked away after failing to agree a final price on the major refit.

A source told the Enquirer: “BAM ended negotiations earlier this year and now Willmott Dixon looks set to agree a deal to deliver the project.”

Constructed in the 1920s, originally as the Lewis’s Department store, the property is located in the heart of Birmingham next to Old Square.

The EPR Architects designed project will provide 110,000 sq ft of Grade A flexible office accommodation.

Charlie Walker, Fund manager to the UK Property Income Fund II, said: “With strong growth in the Birmingham office market and the continued trend for major relocations to the city, the sensitive refurbishment of this landmark building will be an important step in meeting growing occupier demand.”

LGP has been particularly active in the central Birmingham market over the last 18 months.