The Caltongate area of the Old Town was bought last year by an international consortium headed by Artisan Real Estate Investors, which has now lodged a detailed planning application for the site.

Its 220,000 sq ft mixed-use scheme will be centred on a £6.5m civic square with office space, a 400-bed hotel, 28 shops, and nearly 200 homes.

Up to 720 jobs will be sustained during the building phase, which is planned to start in spring 2014.

Managing director Lukas Nakos said: “This is a long overdue opportunity to revitalise a strategic city centre location between Waverley Station and the Scottish Parliament – whilst being part of the very fabric of the historic heart of the city.

“Artisan will bring international capital investment of £150m to the table, coupled with the vision and commitment needed to complete what has already been started.

“The location is the missing piece of the jigsaw which will see the rejuvenation of the Old Town as a vibrant commercial and social quarter of international appeal.

Edinburgh-based Allan Murray Architects drew up the plans for Caltongate.