The monolithic old South Point building must be demolished to make way for redevelopment near Sutton station, developers CNM Estates have said.
It had been expected the tower block would be converted and extended to create homes, but "further intrusive surveys" have shown this not to be feasible, according to Sutton Council documents.
Council officers have recommended an application to tear down the slab-sided brown tower be approved by councillors at next Wednesday's planning committee meeting.
Further changes to the redevelopment plan include an apartment hotel in place of the proposed hotel.
These are serviced apartments that operate a hotel-style booking system.
CNM plan a similar set-up in its Tolworth Tower development.
In recent weeks diggers have flattened and dug down into the land surrounding South Point, while scaffolding has crept up its glass sides.
Work on the project is expected to finish in 2018.
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