A cruise terminal and riverside berth have been confirmed as part of plans to transform Hull, the city council has said.
Cabinet members approved a decision to find a private sector developer for the project.
The new terminal and riverside berth "could boost the city economy by £13m a year, and the wider Humber economy by another £15m a year", the council said.
Sammy's Point is the preferred location for the new riverside berth.
Next to The Deep aquarium, Sammy's Point is close enough for cruise passengers to walk into the city centre.
Alexandra Dock, a mile and a half towards the coast, is also on the shortlist.
But Lib Dem opposition councillors warned they would be unhappy if the terminal was built in between the two, in the residential Victoria Dock area.
Hull City Council said the location and type of terminal would be decided later, once a developer was found.
It said options included a "smaller scale port of call for ships arriving for a day's visit", or "a fully-serviced home port for cruise ships, so visitors would arrive and disembark in Hull."
'Long-term legacy'
Councillor Steven Bayes said it would be a "long term legacy for Hull" and would create long-term employment opportunities.
"This is such an exciting time in the city," he said.
"We already have plans in place to redevelop some key culture hubs like Ferens Art Gallery - now we need to look to how Hull can continue to capitalise on the City of Culture success".
The terminal is part of Hull's 10-year City Plan, launched in June 2013 by High Steward of Hull Lord Mandelson.
The council said the plan for a "major economic refit" could attract £1bn investment and create 7,500 jobs.
Source: BBC