The owners of the Sahara casino on the Las Vegas Strip have begun a redevelopment project that will revitalise the resort.

Los Angeles-based SBE Entertainment announced last week that it is beginning construction after securing the US$400m needed for the project.

The development company says it will reopen the iconic resort that once hosted the likes of Frank Sinatra and Elvis Presley by the autumn of 2014. It will be renamed the SLS Las Vegas.

Managers of the 59-year-old Sahara closed the casino in May 2011 after saying it wasn't economically viable.