Yorkshire Forward, the regional development agency, proposes to use the money for the 6.9 acre Island Wharf site to create new waterfront offices.

There will also be landscaped public areas, car parking, riverside promendade and flood defences.

Three planning applications have been submitted to Hull City Council.

'Economic growth'

The plans are being developed by Hull's urban regeneration company Citybuild.

Chief executive Neil Bradbury said: "As Island Wharf is a key waterfront site, these plans are critical for the continued economic prosperity of Hull."

The project will link the city centre with the waterfront and the visitor attraction The Deep.

Don Stewart, chief executive Yorkshire Forward, said: "Yorkshire Forward is pleased to be investing £12m into what is undoubtedly one of the key economic growth areas of this region."