Local businessman Dan Grayson is on the verge of clinching a deal to re-open the old McDonald's restaurant.

Mr. Grayson is in talks with the Bermuda Land Development Company (BLDC) and it is understood a deal could be signed within days to lease the building.

However, the deal is not linked to any franchise and Mr. Grayson will operate the restaurant as Longtail Base Burgers, a Bermudian company.

He is already advertising for full and part-time jobs and more than 40 people have applied, although at this stage it is not known how many jobs will be created.

"I have bought the equipment from the previous owners and I am trying to get the place off the ground.

"I watched a couple of people go after it and it seemed that other people were going to get in there, but nothing happened,'' said Mr. Grayson, who used to run the McDonald's.

The fast food restaurant was one of the last buildings at the former Naval Air Station to close when it shut in 1995.

Since its closure the Prohibited Restaurant Act has been passed banning all foreign fast food franchises from Bermuda.

Mr. Grayson is in negotiations with the BLDC, which took over responsibility for the former bases, and it is believed the two sides are close to signing a deal.

It is expected the deal would involve a long-term lease for Mr. Grayson to operate from the former McDonald's restaurant.

"We are negotiating with Longtail Burgers about the McDonald's restaurant at the Naval Air Station,'' said a BLDC spokesman who stressed it was not connected with any franchise.

About a quarter of the NAS is open to the public and the old burger building lies on the road to Clearwater Beach.

It was popular with Bermudians when it operated as a McDonald's, but yesterday Mr. Grayson admitted re-opening the business, which will sell burgers, pizza and fish and chips for seven days a week, could be a gamble.

"We are trying to get a feel for what is happening,'' added Mr. Grayson. "It is unique in Bermuda and I thought I would go for it.

"It has been sitting dormant for so long. We are hoping we will be the catalyst to help rejuvenate this area and possibly encourage other businesses to move in.''