Real estate firm Orion Capital, the new owner of the building and the 5.9-acre site in Dundas Street, is working with property company Ediston on a planning application for homes, work places and shops. The number of homes and offices are yet to be indicated.

Previous proposals which included up to 400 new homes on the site were abandoned amid opposition from nearby residents.

A concept master plan has been developed for more than 409,000 sq ft of development, with landscaping and pedestrian-friendly public spaces. There are also 228,000 sq ft of existing high-quality office and data centre buildings already on site, capable of being refurbished or reused.

Ross McNulty, development director for Ediston, said the details of the proposals were being finalised.

He said: “We are acutely aware this site sits at the fringe of the World Heritage Site and our ambitions are to create a brand new quarter that extends and enhances the core of Edinburgh’s New Town. We’re determined this will be a world-class addition to the city and one of the best places in Edinburgh to live, work and come together.”

He said they had held talks with residents and other groups, adding: “We are keen to work with local groups in our design of green space. We believe it is important people can walk and cycle through this development in order to create a place that works for everyone.”

Public exhibitions are planned for September 11 and October 17 at Broughton St Mary’s Church, Bellevue Crescent.