The site where a Mansfield school once stood could be used for low-cost housing for the elderly.
Nottinghamshire County Council is planning to sell the vacant area where Abbey Primary School was demolished to the Brunts Charity.
The organisation would also look to build a medical centre or a dementia care facility to support residents.
It would connect to the neighbouring Patchill Centre, a retirement village which is also run by the charity.
Previous estimates say the site could hold 50 to 70 new homes.
The charity currently houses more than 150 elderly people who are facing financial hardship in Mansfield in one or two-bed flats and bungalows.
“The proposal for the development of the Abbey Road site is for a development of low-cost elderly housing units of one and two-bedroomed bungalows as an expansion of the current provision as well as a medical centre or dementia care facility,” a council report says.
“The new housing units would link into the existing Patchills Community Centre as a central hub which already has an excellent infrastructure including two large community halls with two separate kitchens.”
The former school site on Abbey Road has been declared as surplus to the council’s requirements.
However, it has had difficulty attracting interest from housing developers due to its very narrow access roads, and Homes England also rejected it for funding.
Brunts Charity would be able to demolish two of its existing bungalows to create a new entry point.
Permission to sell the council property for an undisclosed sum has been given by Councillor Keith Girling (Con), Cabinet member for economic development and asset management.
The charity would next need to submit a full planning application before any work could begin.
The former school was built in the 1950s, and by 2016 it was deemed to be at the end of its life.
The county council took the decision to completely rebuild it nearby on Stuart Avenue, which didn’t have the same problems with access.
The old facility was knocked down later that year, and the area has remained vacant since.
