Burgas will build the Eurovision Village around the former Magazia 7 building, Mayor Dimitar Nikolov told reporters.
Transport minister Georgi Peev has promised to clear and prepare the site soon, but there is no set date. EBU officials must then approve the project.
Nikolov said the site is the best choice because it is close to the city centre, the railway station, the bus station and the Sea Garden.
"This is the best place because it is near the central part of the city, it is easy to reach and it is right next to the railway station," the mayor said.
Teams are working on the design of the Eurovision Village.