It is expected the derelict Corrib Great Southern Hotel will be demolished in the coming months.
The news comes after it was announced owners of the site, The Comer Group, recorded a profit of more than €200 million last year.
Responding to a query from Fianna Fáil councillor Alan Cheevers over what levies had been enforced on the site, city council chief executive Brendan McGrath said he had received a proposal from the owners to carry out the demolition work over the coming months.
"Under derelict sites legislation, I used statutory powers to order the demolishing of the building to stop the ongoing vandalism and fires on the site [and] the owners have been making plans to do so. Planning permission to demolish [was granted] a number of years ago.
'Under the Derelict Sites Act 1990, the council can force owners to carry out work on the sites or face a compulsory purchase order'
Mr McGrath also informed members of the chamber at the local authority's meeting at Leisureland on Monday afternoon that the former Connacht Laundry building at Henry Street and the former Dawn Dairies building on the Dublin Road were also to be demolished later in the year.
Fine Gael councillor Frank Fahy welcomed the proposal to demolish the buildings, saying "it was long overdue".
Despite the confirmation of the buildings to be demolished, spokesperson for People Before Profit Galway, Adrian Curran, accused the local authority of doing the bare minimum when collecting vacant sites levies.
He said The Corrib Great Southern was an ideal site for some affordable purpose-built student accommodation. "Under the Derelict Sites Act 1990, the council can force owners to carry out work on the sites or face a compulsory purchase order. Our local authorities don't seem to be taking this issue seriously.”
