Another slice of the property legacy of defunct contractor Carillion is about to be reborn, this time as a hotel.

The former Carillion HQ site at Peal Street, Wolverhampton, next to the Wolverhampton Wanderers FC Molineux Ground, could be redeveloped following talks between Wolverhampton City Council and the club, the Wolverhampton Express & Star reports.

Carillion's last troubled years of growth and its sudden demise left deep scars on its hometown office market. The Peal Street site is one of three former Carillion offices in Wolverhampton looking for alternative uses. A second Carillion office at Birch Street is already in the midst of redevelopment as co-living space.

It is now 18 months since Wolverhampton-based Carillion collapsed, causing delays and complexities for a series of Midlands projects including the £700M Paradise development in Central Birmingham.

The Peal Street office block was demolished in 2010 and replaced by a 60-space car parking. Owner Steve Morgan, a former Wolves chairman, is in discussions about a hotel redevelopment.

If the development proceeds it will be one of a growing squad of hotels which are part of stadium redevelopments. These include the Class of 92-owned Hotel Football next to Manchester United's Old Trafford ground, a new hotel next to Reading FC's stadium, and a Hilton Garden Inn next to Sunderland FC's stadium.

Earlier this year the Wolverhampton club revealed plans to rethink the Molineux Ground, increasing capacity from 31,000 to 46,000, and introducing rail seating. The redevelopment was chosen as an alternative to moving the club to an out-of-town venue.