City Hotel Sveti Stefan is due to open to holidaymakers - such as those with Montenegro Airlines flights to Podgorica - in May this year.
Reconstruction of the island is complete, with the exception of one block, over which there is a dispute.
The Visit-Montenegro blog cited Montenegro news provider Vijesti, which reported that this will mark the end of five years of work.
Among the historical sights that visitors to Sveti Stefan will be able to go to see is a medieval church.
Holidaymakers who take Montenegro Airlines flights to Podgorica will be able to reach the city hotel in about one hour and will be visitors will also be located only ten minutes from the marina in Budva.
Sveti Stefan might be a peaceful spot to visit for those who plan to go to the Montenegro Tango Festival, which takes place in September and October this year at the coastal resort of Herceg Novi.
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