An historic Perth hotel gutted by fire six years ago and allowed to fall into disrepair will finally be rebuilt, subject to final funding approval.

The Guildford Hotel on Perth's north-eastern fringe was built in 1883 and ravaged by fire in the early hours of August 31, 2008.

The once-grand building has been roofless and decrepit ever since, prompting calls by heritage-lovers for state government intervention amid fears it may need to be demolished.

The redevelopment will come as a relief to frustrated protesters who have for years hung socks on the cyclone fence-wrapped site and emblazoned it with placards demanding action, unconvinced owner Luke Martino truly intended to bring it back to life.

On Tuesday, Mr Martino inked an agreement to lease with The Publican Group Australia, which runs Perth's The Aviary and The Public House.

"The Publican Group will underpin the retail component of the site and provide the necessary anchor for the success of the iconic Guildford Hotel," Mr Martino said.

But before the project can proceed, further development approval conditions that need support from all stakeholders will be required, he said.

Jeff Braddock of BPG Australia, which is managing the project, said a condition of development approval was to start rebuilding the old hotel before any other development of the remainder of the site, with food and other retail businesses, can begin.