The only remaining preferred bidder for the redevelopment of the Tropicana in Weston-super-Mare has been granted exclusive rights to the project.
Nightingale Group wants to redevelop the derelict site on the seafront.
They were left as the sole bidder after Havard Tisdale said the project to transform the old swimming pool was no longer viable for them.
The status for the Nightingale Group means they can progress discussions with prospective funders.
North Somerset Council said the "EU-defined procurement process must still be followed to its conclusion".
The statement added: "The granting of exclusivity status in developments of this nature makes it easier for potential developers to secure any funding needed for a project.
"[Nightingale Group can] negotiate with potential occupiers of space within a development."
Councillor Nigel Ashton, the council's leader, said: "It's not something that we have to do, but we are committed to giving Richard Nightingale whatever support we can to help him develop his proposals."
A previous scheme to regenerate the site by construction firm Henry Boot was hit by the recession.
The Tropicana's heyday was in the 1960s.