The deal to sell the Central Bank’s headquarters is expected to be wrapped up by Christmas, after the bank confirmed that US property company Hines has been chosen as preferred bidder to buy the building on Dame Street in Dublin.

"Hines and the bank will enter into a process that is subject to various procedures, and will be managed by the bank's property advisors Lisney, " the bank said on Tuesday.

The bank did not confirm the price, although it is thought to have been close to, but below, the €65 million that was sought by the vendor. It includes the imposing tower on Dame Street and two adjoining buildings.

Hines, which is also building a major residential development at Cherrywood in south Dublin, beat off five other bidders for the building. It was believed to have been selected as preferred bidder shortly before last weekend.

With a severe shortage of hotel rooms in Dublin, it was originally speculated that the tower could be redeveloped for this purpose. This is now thought highly unlikely, however, due to the cost of a conversion.

It is thought more likely that the listed building will instead be revamped internally and offered as high-grade office accommodation. Sources speculated that the buyer will have to spend in the region of an additional €10 million upgrading the property. Hines was unavailable for comment.

The Central Bank will start moving its staff to a new site in Dublin's docklands before the end of the year.