The businessman, who owns English football club Manchester City, told Cambodia's Prime Minister Hun Sen of his plans for Koh Kong province, near the Thai border, during a meeting on Friday in the capital Phnom Penh.
"He did not say how much money will be invested, he just told Prime Minister Hun Sen about his plan," Hun Sen's spokesman, Eang Sophalleth, told AFP.
Thaksin, joined by other Thai investors, told Hun Sen that the planned city would include a financial centre, hospital, schools and housing, he said.
A port to be used for fixing broken ships would also be included, he said.
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