Visitor attraction operator Merlin Entertainments has confirmed it is working with entertainment company Circle Entertainment and developer Unicorp to develop a 425ft-high Orlando Eye wheel attraction in Orlando, Florida, US.

A spokesperson said talks are "well advanced" and that a deal would also incorporate two other Merlin attractions - one of which would be a Madame Tussauds.

The attractions will form a key part of Circle and Unicorp's exciting plans for I-Walk Orlando - a mixed-use development boasting retail, restaurant and bars and entertainment facilities.

I-Walk is scheduled to open in 2013 on the city's International Drive.

Paul Kanavos, president of Circle Entertainment, said: "I-Walk Orlando will be a very exciting addition to International Drive, providing a unique mix of leisure and retail activities.

"Merlin has a unique portfolio of indoor visitor attractions all with global reputations; but most importantly they are the owners and operators of the world famous London Eye observation wheel in the UK."