The Premier of Niue, Toke Talagi, says his government is finalising negotiations with a Chinese company for the development of a 40 room hotel complex adjacent to the country's golf course.
He says this follows discussions the government has had with a number of Chinese companies and some from other countries about building a hotel, which has been on the Niue wish list for some years.
A second hotel on the island is seen as vital if the key tourism sector is to grow.
While Mr Talagi says it is not yet a done deal his office has asked local businesses to give quotes for the supply of building materials for the project.