Two scrutiny panels are to be set up to find out what went wrong with plans for a so-called "Fourth Grace" on Liverpool's waterfront.
Plans for the scheme were altered to include apartments
The announcement was made at a meeting of Liverpool City Council's cross-party Regeneration and Environment committee.
The panels, one chaired by a Liberal Democrat and the other by a Labour councillor, are to publish two separate reports by the end of September.
Will Alsop's design was dropped last month after it was deemed "unworkable".
The council hoped the waterfront development would be the centrepiece for the city's year as European Capital of Culture in 2008.
Plans ran into difficulty when additional residential towers proposed to be built alongside The Cloud had height restrictions imposed on them.
The scheme's public partners said costs rose from £228m to £324m.
The regeneration body Liverpool Vision, the North West Development Agency, Liverpool City Council and National Museums Liverpool are partners in the project.
They are set to review options available for the site, near the Liver Building, the Cunard and the Port of Liverpool buildings.
Plans could include a museum, theatre, public open spaces and a canal link.