Whitbread is back in talks over bringing a 120-bed hotel and restaurant to Walsall’s Waterfront after pulling out of the scheme in the summer.

The company has re-entered talks with developers Urban Splash over the plan for a Premier Inn and Table Table restaurant to go opposite the Crown Wharf shopping centre, just off Wolverhampton Street, creating 60 jobs.

It was originally hoped building work would begin on the hotel in the summer, but Whitbread pulled the plug at the last minute blaming the recession.

Now the scheme is back on the agenda according to head of regeneration at Walsall Council Councillor Adrian Andrew.

He said: “Whitbread is back in talks with Urban Splash. Following the news last week about the start of the Waterfront South scheme it shows Walsall has put itself at the top of the agenda in the West Midlands.

“Not only will it create jobs it will protect jobs in the construction industry.”

If the new hotel scheme goes ahead it will be the first phase of the Waterfront North scheme to feature homes, offices, retail and leisure space in two iconic oyster shaped buildings facing each other on opposite sides of the Walsall Canal.