Conran is to open its 12th London restaurant with the takeover of the People's Palace at London's Southbank centre.
A spokeswoman for the Southbank said: "Southbank and Conran Holdings are discussing terms for the level-three restaurant at the Royal Festival Hall."
The Royal Festival Hall, which closed in July this year for a £91m refurbishment, is set to reopen in the summer of 2007.
Conran takes over from the Capital Group, which also operates the Capital Hotel in Knightsbridge and the two-Michelin-starred Capital Restaurant.
Capital Group managing director Joe Levin said: "We have decided not to continue with the bid [to renew the contract] in order to focus on the other areas of growth within the business."
Capital will continue to manage all bar operations at the Queen Elizabeth Hall and Purcell Room.
A Conran spokeswoman declined to comment.