A new £32m Hilton is set to be built near the Leeds Arena this summer.
The five-star, 14-storey hotel would feature a top floor sky bar and could open as early as the summer of 2015, according to the Yorkshire Evening Post.
Talks on funding for the project were said to be at an "advanced stage".
The development would be the third Hilton in Leeds, with two sites in Neville Street and a Doubletree by Hilton, in Granary Wharf.
A Hilton Worldwide spokesman said: "The Leeds Arena development is set further boost the city's position as an attractive entertainment and retail destination.
"We have entered a conditional agreement with GB Group to develop a new property near this exciting location."