Talks are continuing between Babergh District Council and a budget hotel chain regarding the future of Belle Vue House.
Simon Barrett, lead member for growth and the local economy at Babergh District Council, confirmed that, after months of public consultation, discussions had been resumed with a hotel developer.
Mr Barrett said the development would bring 60 jobs to the local area.
Despite this, there has been opposition from residents hoping to retain the house as a landmark.
But Mr Barrett said that any plans for the house need to help the town grow economically.
“People were coming forward with admirable views, but they were not fundable,” he said.
“It will have a knock-on effect on the local economy in Sudbury.”