Varosha could be turned into the ‘Las Vegas of the Mediterranean’ reports suggested on Monday, following revelations that a plan has been seen in the UK from billionaires all over the world to redevelop the ghost town, following the unilateral move by the north to reopen the area.

According to a report published in the UK’s Daily Express, London could be thrown into a diplomatic row with other countries, over the plan that the newspaper claimed to see for the development of the area.

“Now after five decades of stalemate, after a number of plans to reunite the island were rejected by the Greek Cypriots, has seen plans to bring Varosha/Maras back to life,” the website said.

However, according to the report the British government could be met with relentless opposition, especially towards the Royal Family, who the paper claimed owned the Golden Sands hotel in the area.

According to the Turkish Cypriot authorities, King Charles owns the Golden Sands hotel in the resort town, which is still closely guarded and not accessible without prior permission.

The enormous hotel complex was, when it opened in 1974, declared the world’s first seven-star hotel and was so large it had an internal railway to take clients around.

The Royal Family have previously strenuously denied the hotel is owned by the crown and there are questions whether it is now being used by UK security forces with the island close to the Middle East and international hotspots including Syria. But the ministry of defence also denied involvement with the hotel when asked by Tory MP Mark Francois.

However, according to the report there is already a row going on with property owners in Varosha, making legal problems for the area’s development.

The proposal by a consortium of billionaire businesspeople from across the globe as well as some of the world’s most successful hoteliers has identified the beachfront town of Varosha as the best location for this new billion-pound project.

Under the new proposals, it would be restored to its place as one of the world’s top holiday destinations. Dozens of casinos, luxury hotels and resorts, shops and fine dining restaurants are planned.

Dr Muhammet Yasarata, Chairman and CEO of the Paradise and Premier Group of Companies, a leading luxury tour operator in the north, Turkey and Malta said: “For too long America has held Las Vegas as a shining example of what can be achieved through strategic investment. It is about time Europe had a contender to attract tourists from all corners of the globe.

“What better place to establish a rival, than in a historically significant tourist destination that has languished unused and neglected for far too long.”

Chet Ramadan, co-chairman of the Freedom and Fairness for the north said: “North Cyprus and the rest of the island will benefit enormously from this development. It will show the world that North Cyprus is open for business.”