Subject to planning permission, Lancaster On Ice will install an “observation wheel” - twice as high as the city’s town hall - in Dalton Square this November.
Featuring enclosed pods that rotate around the arms of the wheel, the structure is the biggest portable observation wheel in Europe.
It will be situated on the cobbled area of Dalton Square between The Borough pub and Jo and Cass Hair and Beauty.
Last year, Lancaster On Ice attracted 37,000 skaters to the city, with numbers expected to hit 50,000 in 2019.
The hugely successful event is set to be even bigger and better this year, with more ice to skate on, the return of the tipi bar, more stalls, and the huge wheel that will provide unique views over the city and wider district.
Dan Knowles, from Lancaster On Ice, said: “We started the ball rolling on this a couple of months ago, and gave a lot of thought as to how we could make it brilliant.
“To ensure its continued and long term success, Lancaster On Ice has to go from a small one day event for Lancastrians to a weekend away in the city for the wider region.
“We want to encourage the rest of the community to start standing up and thinking about what else could be happening in the city over the Christmas period, and what they could be doing to make that happen. There needs to be planning going on, places people can stay, and things to do in the wider city so that there’s a benefit for everyone.
“We see Dalton Square and Lancaster On Ice as a landing spot for tourists over the Christmas period, who will then go on to enjoy the rest of what the city has to offer.”
Organisers say the skating rink “will be prettier looking” this year, and will also be run by greener energy, with more skate aids for skaters and a wider variety of food stalls.
Lancaster On Ice will take place between November 23 and January 5.
Entry to the wheel will be £5 per person.
Lancaster On Ice Came to the city for the first time in 2018.
Martin and Hannah Horner, who run The Borough in Dalton Square, said they often looked out of the pub’s function room and imagined seeing an ice rink there during the winter.
Martin said last year: “When Dalton Square is all lit up on crisp winter nights there are few places as magical.”
Last year the event raised over £6,000 for St John’s Hospice and offered free skating to Unique Kids and the food bank.