Las Vegas Sands Corp has chosen Madrid, Spain as the preferred location to build an integrated resort development for the European market.

A spokesperson said the identification of a major European city completes the first phase of the company's plans.

The second phase will include the determination of size, scope, specific location, and financing options for the project. It has already allocated around 25-35 per cent equity for the proposed development.

Sheldon Adelson, chair and chief executive of Las Vegas Sands, said the company had chosen Madrid over another Spanish city - Barcelona - following a "close contest".

"The regional government of Madrid has been a strong advocate for this potential development and we are appreciative of the energy they have brought to this process," Adelson said.

"Barcelona is an outstanding tourism destination and choosing Madrid over Barcelona was not an easy selection."

He added that the company will still continue to aggressively focus on a variety of other development opportunities, specifically in the Asian countries of Japan, Korea and Vietnam.