The Tongan government placed all contents of the Dateline Hotel on sale on Saturday so it could be available for its new foreign management, the Tanoa Group.
Radio Tonga reports that the Cabinet has approved Tanoa group to start investing in the neglected hotel.
The Prime Minister, 'Akilisi Pohiva, says he believes Tanoa is reliable enough to look after the government's property for growth.
Last year Tanoa withdrew from discussions with the former government.
In the past the government has said the hotel plays a key role in the future of Tonga's tourism industry and it was committed to finding a suitable private sector partner to undertake the project.