The Ocean Majesty is set to leave from its berth in Velsen, Netherlands, after three years housing asylum seekers.
According to reports in the Dutch media, the 1966-built ship is scheduled to depart the port near Amsterdam in early August.
As one of the oldest active cruise ships still in service, the vessel has been serving as a floating hotel as part of a charter contract with local government entities.
The deal is set to end soon as the Ocean Majesty was deemed too expansive for the operation, the IJmuider Courant said.
With the capacity to house over 450 guests, the vessel was also considered too large for the job and currently houses only 300 asylum seekers.
The local government is now looking for a smaller and cheaper replacement, having held two tenders to locate interested shipowners.
According to the IJmuider Courant, the Ocean Majesty was disqualified because of the cost to charter the ship.
The veteran cruise ship arrived in the Netherlands for its charter contract as floating accommodation in mid-2023.