Doubts have arisen about the future of the crucial initiative recently amid a war of words over whether or not the proposals have been "downgraded" by the Scottish Government.
Now the as yet un-named international company is to enter into negotiations with the council and ferry operators Stena with a view to taking forward a joint venture.
Cllr John Dougan expressed his delight. He said: "This is an exciting development - but one that is at a very early stage.
"It is vital that everything is done to facilitate further communication between the council, Stena and the unnamed company, and that everyone works on progressing this important project in Stranraer."
MP Russell Brown added: "Obviously this is encouraging news. Significant private investment will be essential to delivering a successful regeneration project, and hopefully the council can work positively with this developer to take the Waterfront scheme forward."
But the MP also warned: "Even if this private investment can be secured, there is every likelihood that public sector cash will still be needed for elements of the project.
"That's why it is essential that the Scottish Government urgently rethinks its woeful proposal of £400,000 for every local regeneration project in our region."
This week, Dumfries and Galloway Council was keeping fairly tight-lipped. A spokesman said: "We can confirm that the council has been approached by an international developer expressing an interest in the Stranraer Regeneration Project.
"Discussions are on-going but at an early stage and this will also involve Stena Line.The Planning Housing and Environment Committee was given a private briefing on Tuesday because of the commercially confidential nature of the business and gave unanimous support for exploratory discussions.
"Work will now get underway to discuss a possible memorandum of understanding between all the interested parties."
The status of the Waterfront project was also considered by councillors at the meeting.
Members instructed officers to seek an assurance from the Scottish Government that the Loch Ryan corridor will be granted National Project Status under the National Planning Framework.