Premier Inn remains interested in buying land to the front of Belle Vue Park in Sudbury.
The hotel chain has been looking into the possibility of acquiring land currently used as a BMX park.
On Tuesday, Nigel Bennett, town and district councillor, told Sudbury Town Council that discussions between Premier Inn and Babergh District Council were continuing.
“Talks are ongoing with the hotel chain over Belle Vue Park,” said Mr Bennett said during a meeting at the town hall.
A number of different options have been put forward for the future use of Belle Vue House, which is owned by the district council, and a budget of £800,000 has been put aside to either replace or renovate the late-Victorian building.
Premier Inn has confirmed it is interested in the site.