QE2has been sold by Cunard to developers Dubai World in a $100 million deal that spells the end of the cruise liner’s journeys across the Atlantic from next year.

Instead the QE2 will have a permanent home at the man-made island Palm Jumeirah in Dubai as a luxury floating hotel and entertainment venue.

It will be delivered to the Palm Jumeirah in Dubai in November 2008 where it will refurbished before being berthed in a specially constructed pier at the man-made island ready for 2009.

QE2 has been purchased by Istithmar, the investment arm of Dubai World.

The ship, which was launched by the Queen in 1967, has undertaken 25 world cruises and crossed the Atlantic 800 times, carrying more than 2.5 million passengers.

The liner will sail its final journey out of Southampton to Dubai on November 11 2008 and farewell itineraries will go on sale on June 27 at 2pm.

Cunard president and managing director Carol Marlow said: “We are delighted that when her legendary career as an ocean liner ends there will continue to be a permanent home for her that will enable future generations to continue to experience fully both the ship and her history.”