Hull City Council has agreed plans to regenerate the city's Western Docklands area.
The report considered proposed using the existing cruise port budget to create a masterplan for the area between Hull Marina and the Daltry Street Flyover, including the Smith & Nephew site, with the potential to locate a cruise terminal there if the case stacks up.
The council will now seek private sector partners and government funding for any future schemes.
The Western Docklands area has enormous unfulfilled potential, with opportunities for new homes near the riverfront, as well as much-needed land for businesses to grow and invest in local jobs.
Councillor Mike Ross, Leader of Hull City Council, said: "We are determined to bring more quality jobs to our city, create new residential areas where people really want to live, and improve those we already have.
"We have taken the decision that Sammy’s Point is the wrong location for any cruise terminal, and that investment is better spent regenerating an area that has huge untapped potential.
"Working closely with Associated British Ports (ABP), who have a working port here, will be critical to any successful project in this area.
"Regenerating an area this big is likely to take up to 10 years, but the council is planning for the long-term and thinking about the city's economic future."
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