The UK company behind the Wheel of Perth, located next to the Bell Tower, will dismantle the ferris wheel next month, some 15 months after it was erected.
A City of Perth spokesperson told WA Business News that World Tourist Attractions had made the decision to take down the controversial wheel on May 2.
The ferris wheel began operating in January last year under a two-year deal with the City of Perth, which made the prime location area available.
Under the deal, World Tourist Attractions had the option of opting out before the two years was up.
In a statement, City of Perth Lord Mayor Lisa Scaffidi said it had been in talks with the operators for the past three weeks on a possible site for a permanent wheel, which requires an area where concrete pilings can be installed.
"For such a wheel the operators require a 5-year minimum contract period. While these discussions will still continue, I have now been advised that the current "mobile" wheel will be removed in May," Ms Scaffidi said.
"As it is a "mobile" wheel it is almost twice the capital cost of a fixed wheel. The company has also assessed that its full capacity is not being used in Perth and they want to bring a slightly smaller wheel (5 metres less diameter) which has fewer gondolas.
"The fixed wheel requires concrete pilings to secure it. So basically, Perth can support a wheel (proven by this wheel), but it needs to be a fixed wheel like Brisbane has at SouthBank, not an expensive mobile wheel.
"The mobile wheel has a capital cost of around $10 million, while a permanent wheel is about half that capital cost. Mobile wheels are designed to move from location to location, rather than be permanent structures.
"The original approval for the Wheel of Perth was for only two years. The current location can not be long- term as it will be required for the Waterfront project."
Ms Scaffidi added that the council will have difficulty in finding a site that meets the operator's requirements.
World Tourist Attractions has indicated it favours Barrack Square but Ms Scaffidi said that would be difficult to achieve given its close proximity to the Bell Tower.
