The Grade II listed Chancery building will be transformed in to a 137-room hotel with a spa and ballroom for 1,000 guests.
Ambassador Matthew Barzun and his staff are set to move out of the embassy to occupy a new site in Nine Elms next year.
According to the Evening Standard, the site’s Qatari owners are set to remove the bollards and barriers surrounding the embassy – which is one of the most heavily guarded buildings in London - to create an ‘open, expansive green space’.
Jerry Holmes, chief development officer for Qatari Diar, told the Standard: “We take our responsibility to the local community very seriously and are committed to undertaking an in-depth and thorough engagement with local residents, businesses, amenity societies, heritage bodies, Westminster City Council and other local stakeholders.”
Plans will be submitted to Westminster City Council next month and a public exhibition of the scheme will run from 11-16 April at 24 Grosvenor Hill.
The American embassy has called the Chancery Building home since 1960, and has occupied a Grosvenor Square address since 1938.
Qatar already owns several major London landmarks including The Shard, Claridge's, The Berkeley and The Connaught hotel.