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A British warship that served in the Falklands conflict could soon become a floating museum under plans lodged by Hull City Council.

Council bosses have spent £540,000 on a bid to bring the recently decommissioned HMS Illustrious to the city.

The proposal, part of the council's plans to turn Hull in to an international cruise terminal, is one of two being considered by the Ministry of Defence.

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HMS Illustrious could soon become a floating museum under plans lodged by Hull City Council

A previous bid from Portsmouth City Council to turn the 22,000-tonne ship into a tourist attraction in her home port was rejected. It is not yet known which is the third city to have made a bid.

Illustrious, nicknamed Lusty, was decommissioned in July after 32 years' of active service.

It served in Bosnia and the Gulf as well as helping with the aid mission in the Philippines after Typhoon Haiyan, which claimed more than 6,000 lives.

It was decommissioned at a service at Portsmouth Naval Base in July. 

HMS Illustrious, nicknamed Lusty, was decommissioned in July after 32 years' of active service

Last year, the ship was involved in efforts to distribute relief in the wake of Typhoon Haiyan in the Philippines

The ship served in the Bosnian, Iraq and Sierra Leone conflicts, and evacuated Britons during the Lebanon war

Lady Sarah Chatto, daughter of Princess Margaret who launched HMS Illustrious in 1978, was at the event with hundreds of veterans.

Negotiations are currently taking place to sell the ship and the Ministry of Defence has insisted that any buyer must keep HMS Illustrious in the UK.

Dr Duncan Redford, senior research fellow in modern naval history at the National Museum of the Royal Navy, said it would be interesting to see where it ends up.

He said: 'The ministers in government have made it clear that they would like to see a heritage option in the disposal plans.

'Illustrious is a big ship - there are going to be a limited number of ports and cities that will have the infrastructure that will be able to support her.'

After 32 years HMS Illustrious hands over to HMS Ocean (archive)

Hull City Council confirmed it had put in a bid to try to turn HMS Illustrious into a floating maritime museum

A sailor looks through a drawer in his mess on HMS Illustrious. The vessel accommodated 600 personnel

Petty Officer Ray Jones demonstrates the use of a compass on the bridge of HMS Illustrious

HMS Illustrious was built by Swan Hunter shipbuilders on the Tyne, to join HMS Invincible and HMS Ark Royal.

She was rushed into service to join the Falklands War effort, but then went on to sail nearly 900,000 miles around the world on her deployments.

The ship served in the Bosnian, Iraq and Sierra Leone conflicts, and also helped evacuate Britons during the Lebanon war in 2006.

Last year, the ship was involved in efforts to distribute relief in the wake of Typhoon Haiyan in the Philippines, which claimed more than 6,000 lives.

The engine room onboard HMS Illustrious before the ship was decommissioned in July this year

HMS Illustrious was able to carry up to 22 helicopters as well as several Harrier aircraft

Hull City Council confirmed it had put in a bid to try to turn HMS Illustrious into a floating maritime museum docked in the city as part of its role as UK city of culture for 2017.

The MoD refused to say where the other bids were from, but said it had also looked at proposals from private companies, charities and trusts.

Businesses in Portsmouth last year expressed interest in securing the warship, to turn it into a conference centre and venue in the city.

Earlier this year a Southampton firm unveiled ambitious designs to turn her into a yacht.