US property tycoon Donald Trump has agreed to build one of his iconic Trump Tower developments in the tiny former Soviet republic of Georgia, the Georgian presidency says.

Trump signed an agreement with Georgia's President Mikheil Saakashvili in New York to build the tower, the presidential administration said on Wednesday in a statement.

It provided no financial details of the agreement and said a decision had not yet been made on where the building would be located.

Among potential sites are the Georgian capital Tbilisi and the Black Sea port city of Batumi, which Georgia is heavily promoting as a tourist destination, the statement said.

Saakashvili was in New York for the UN General Assembly session and for meetings with potential investors as he seeks to revive Georgia's struggling economy.

Georgia's once-booming economy has suffered from investor flight due to the global economic crisis and its five-day war with Russia in August 2008, contracting by 3.9 per cent in 2009.

The Georgian government is seeking to revive interest from investors after foreign direct investment plummeted last year by 51 per cent, in particular by touting its Black Sea coast as a holiday destination.

Copyright © 2010 AFP. All rights reserved.