Newly synthesized 8-hydroxyquinoline based benzothiazole derivative 2 showed a distinctive $Hg^{2+}$-selectivity over other transition metal ions in aqueous solution. The fluorescence emission at 455 nm of 2 was completely quenched upon interaction with $Hg^{2+}$ ions in dioxane-$H_2O$ system (9 : 1, v/v). The selectivity was decreased in the order of $Hg^{2+};>>;Cu^{2+};>;Cd^{2+};>;Pb^{2+};{ hickapprox};Zn^{2+};{ hickapprox};Ni^{2+},;and;Hg^{2+}$ concentration dependent fluorescence quenching profile was observed in the presence of common interfering metal ions as background. The fluorescence behavior of 2 suggests that the prepared compound could be used as a fluorescent signaling subunit for the construction of new $Hg^{2+}$-sensitive ON-OFF type supramolecular switching systems.