Dan Pepperell set to open a French bistro in Potts Point

If Potts Point didn't already have enough action on its plate, PP has now snared one of Sydney's hottest chefs.

Dan Pepperell (of Restaurant Hubert and Alberto's Lounge fame) will open a French bistro early next year in the landmark Challis Avenue site where the Lotus pop-up finishes its run next month.

Pepperell slides in next door to his former employers, the crew at Fratelli Paradiso. He used to run the kitchen at Fratelli spin-off 10 William Street.

The chef has assembled an impressive posse, with Michael Clift (Rockpool) and Hubert sommelier Andy Tyson spotted touring sites across the city with Pepperell in recent months.

They were believed to have come close to moving on a venue in Chinatown. Instead they'll join one of the city's powerhouse dining precincts.

Potts Point is set to welcome Ria Pizza + Wine from the Bentley and Monopole team, and Diana, a Korean-Chinese restaurant, is going into the former site of Billy Kwong on Macleay Street.

• Terry Durack reviews the Lotus pop-up