Firefighters worked through the night to tackle the blaze as it tore through the Robertson’s building on Saturday.

The former store comprises a four-storey art deco style B-listed building constructed c.1935, prior to which it was the Willison United Free Church.

The development site, measuring just over 0.5 acres in area, already had planning permission for a 215-bed hotel with additional space for a licensed restaurant on the ground floor.

Scarlett Land and Development marketed the site for sale last September as an ideal location for purpose-built student accommodation.

The fire is being treated as wilful and Police Scotland said officers are following a number of lines of enquiry to identify those responsible.

Detective sergeant Stuart Martin, from Dundee CID, said: “This was a reckless and dangerous act of fireraising, which has caused significant damage and disruption to the area.

“We have spoken with a number of witnesses and would appeal for anyone with information on the incident to come forward and assist our enquiries.”

No casualties have been reported, the Scottish Fire and Rescue Service confirmed.

A spokesperson said: “Operations Control mobilised nine appliances and specialist resources to the scene where firefighters worked throughout the night to extinguish the fire.

“There were no reported casualties.

“Two appliances and specialist resources remain on the scene whilst crews work to make the area safe.”