An empty shop in the Cowgate is to reopen to the public selling shoes and textiles.
The ground-floor unit at 319 Cowgate, which is owned by the council, has been vacant since 2007.
Ergun Cabanag has now come forward with an offer of £6000 per year.
Council officials said the offer was not the highest of the three bids but it represents the best “long-term outcome”.
A final decision will be made next week.