Queensland billionaire mining magnate Clive Palmer has unveiled his plans to build the Titanic II to add to his tourism portfolio.

Mr Palmer said his new company Blue Star Line Pty Ltd had commissioned the state-owned Chinese company CSC Jinling Shipyard to build a near replica of the ill-fated Titanic. The cost is unknown.

The Titanic. Credit:AP

He made the announcement on the same day he revealed his hopes to contest the next federal election in the Queensland seat of Lilley, held by Deputy Prime Minister and Treasurer Wayne Swan.

Mr Palmer said the companies had signed a memorandum of understanding to build the cruise liner in China, with the ship's maiden voyage from England to North America scheduled for late 2016.