The £50m plans for a 150-bedroom, five-star hotel, with conference and leisure facilities, could create up to 300 jobs and increase tourism in the area.
Brian Frater, head of planning at Scottish Borders Council has recommended approval of the plans with conditions.
He said: "The proposed erection of a 150-bed hotel, leisure and conference facility within the Scottish Borders region would represent a huge boost, not just to the tourist industry, but also to the economy of the area.
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"The proposed hotel would result in inward investment of around £50m."
In a statement developers Manor Kingdom Estates Ltd and hotelier De Vere said: "Our vision is to deliver the first truly world class hotel and conference facility in the Scottish Borders at Rutherford Castle.
"The established parkland golf course provides a quality setting for this major investment in the Scottish Borders.
"This hotel will be comparable to the standards set by Gleneagles, Turnberry, Cameron House and St Andrews Bay resort hotels."
There have been a number of objections to the hotel relating to possible increases in traffic and worries the building will not be in keeping with the area.
Scottish Borders Council's planning committee has been recommended to back the plans when it meets next week.
(GK/JM)
