Further talks to determine the future use of Belle Vue House in Sudbury and the surrounding land are due to be held today.
Discussions with interested parties have been taking place for months and an agreement is edging closer.
Hotel chain Premier Inn has been linked with a bid to buy land to the front of the house in Newton Road – formerly the town’s swimming pool and now a BMX Park. The land is owned by Babergh District Council.
Simon Barrett, a Sudbury town and district councillor, said: “Negotiations with a third party are taking place.
“The details are too commercially sensitive to be disclosed at present, but talks are progressing, which is good.”
On Tuesday, Mr Barrett and Sue Dawes, the district council’s economic development officer, gave a behind-closed-doors presentation to members of Sudbury Town Council about plans for Belle Vue House.
Earlier this year, the town council expressed an interest in taking over the management of the late-Victorian building after it was claimed the facility was being under-utilised.
Options to improve the site have included turning it into a wedding venue, as well as incorporating public toilets and a cafe.
Up to £800,000 has been allocated by Babergh District Council to spend on either renovating or replacing the building.
Mr Barrett said more information on its future would be known following today’s meeting.
“Nothing is concrete at the moment,” he said. “We don’t want to get people’s hopes up and then dash them.”