The Dateline Hotel in Tonga is expected to re-open in 2017 as the Tano'a International Dateline Hotel.
Radio Tonga reports this is part of the agreement signed by the Tongan government and the new management of the Dateline.
The Minister of Finance Dr 'Aisake Eke signed the agreement with the Tano'a group.
The renovation work is expected to start later this year and run for two years.
Dr Eke says the cabinet is expected to endorse the new lease arrangements proposed to last for 99 years.
He says the cabinet procession of the lease and approval of tax concessions will take about two weeks.
Dr Eke says the start of renovation work is due to begin in May.
A representative of the Reddy Group, who owns the owner of Tano'a, says the move will help boost Tonga's economic and tourism industry.
He says the refurbishment will employ a lot of local labor and materials will also be purchased there.