The designers of the London Eye submitted plans this week to build the Brighton i360, and the income raised from the project looks likely to be pumped into the pier.
Rachel Clark, general manager of the Brighton West Pier Trust, said she was thrilled that Marks Barfield has chosen the site.
'As soon as funding was pulled by the Heritage Lottery Fund, the prospect of saving the entire pier was lost. But with the income of the i360, we will be able to save what is left of it.
'The i360 has opened up new possibilities for the future of West Pier, and it has already led to serious talks about restoring it. We see the viewing platform as the 21st Century version of what West Pier was when it first opened in 1866.'
The Brighton i360, budgeted at £20 million, will lift 100 people at a time in an aerodynamic dome.
David Marks said: 'It seems a universal desire to see the earth and its cities from exceedingly high places. The Brighton i360 will inform, excite and inspire.'
Julia Barfield added: 'It will enable people to see the whole city and will be a dramatic addition to Brighton's skyline. We hope the Brighton i360 will become a 21st century symbol for Brighton, as the London Eye has for London.'