A developer is believed to be interested in turning the former Chipping Norton War Memorial Hospital site on Over Norton Road into a housing development.
The Victorian building has been empty since the hospital was relocated to a new site on London Road.
London-based developer St Charles Homes is believed to be interested in building 14 houses on the site.
Town councillors hoped the old site, together with the vacant Castle View and ambulance station sites nearby, could be put to community use.
They also hoped that the historic hospital building, which is in a conservation area, would be preserved by any new owner.
For the full story, read the new edition of Chipping Norton News, which is out now.