Asbestos is confirmed to be in the burnt out Royal Albion hotel.
The carcinogenic substance is known to be in the textured ceiling coatings used in the building, which went up in flames on Saturday.
Demolition is planned and will take two to three weeks so firefighters can safely access the Grade II* listed building in King's Road, Brighton.
Brighton and Hove City Council said there is “unlikely to be any significant risk of exposure to asbestos following this fire”.
The A259 will remain closed until at least Thursday.
A spokesman said: “Our building control team are on site and contractors will begin the demolition of the damaged section of the building as soon as possible. We’re anticipating the demolition will take two to three weeks.
“The demolition is to help the fire service’s access to the site, as parts of the building are no longer structurally safe.
“UKPower Networks and Southern Gas networks are on scene to ensure that that all electrical and gas are isolated and made safe prior to any work progressing.
“Asbestos is known to be in the textured ceiling coatings used in the building but there is unlikely to be any significant risk of exposure to asbestos following this fire.
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“The area around the hotel has been cordoned off and our on-site contractor will continually assess the risk
“Unfortunately, the properties directly behind the Albion Hotel will remain inaccessible due to the risk of falling debris during the demolition process. Anyone affected by this is able to contact our housing team for advice and support.
“We are grateful to residents and visitors for their ongoing patience and understanding.”
The hotel went up in flames at around 5.30pm on Saturday and destroyed much of the building’s west wing.
Smoke could be seen for miles across the city as crews battled the fire going in to Sunday.
Yesterday, crews doused down hot spots and demolition teams arrived but this appears to have been delayed due to concerns raised from a heritage group.
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