The billionaire owner of Bruce Lee's final home in Hong Kong said yesterday he would build a museum to the martial arts legend instead of selling the luxury house.

Hotel and real-estate tycoon Yu Panglin, 86, had put Lee's two-level, 530-square-meter townhouse in Kowloon on the market, but changed his mind after fans campaigned for its preservation.

Yu told reporters that he would donate the property to Hong Kong's government for use as a museum, unveiling a plan to expand the site into a memorial to the global icon. He would also raise capital for the site and all future profits would go to charity.

The tycoon wanted to keep the house as it was, but would build an extra wing to include a library, a martial arts center and a cinema to showcase Lee's martial arts philosophy, according to Yu's property consultant.

"If you just do it small scale, you cannot attract tourism and attract people," said the consultant Michael Choi.

Lee, who died under mysterious circumstances in 1973 aged 32, starred in such kung fu classic films as "Fist of Fury," "Game of Death" and "Enter the Dragon." Lee also helped usher in a golden age of Hong Kong film in the 1960s.

His fans were delighted by the news, having lobbied the Hong Kong government for years about a museum on the site. They hope it could prove as big a draw as memorials to other stars such as Elvis Presley's Graceland mansion in Tennessee.

Hong Kong newspapers had reported Yu had turned down an offer of about HK$105 million (US$13 million) for the house.

"The greatest difficulty has been overcome now that Mr Yu has donated such a generous gift to the people of Hong Kong," said Wong Yiu-keung, the chairman of Hong Kong's Bruce Lee Club.

"From a tourism point of view, if you have this Bruce Lee museum, it will attract a lot of visitors to Hong Kong."

But Yu's plan will require government cooperation. He said he intends to send a proposal to Hong Kong's Commerce and Economic Development Bureau next week to rezone the site from residential to commercial.

Hong Kong Tourism Board said in response it "welcomes all initiatives that support the promotion of Hong Kong as a tourist destination."