A triangular piece of city wasteland with planning permission for a high-spec office block for more than 1,000 workers is set to be sold off by the council.
City council chiefs have agreed to make the freehold of the Crocus Place site available for sale.
It comes after the project to create Grade A office space was put on hold in early last year.
A Nottingham-based company approached the authority over the purchase of the site with the intention of building the development.
The decision to make the freehold available for sale forms part of the wider proposal.
The interested company is unknown at the stage, however.
One business leader said a scheme like this would be vital for the city centre's recovery out of the coronavirus pandemic.
The East Midlands Chamber's chief executive Scott Knowles said: "Cities must constantly evolve and it’s important we’re bold in our long-term vision to regenerate following the affects of the pandemic on our city centres.
"The demand for flexible and agile working spaces for businesses is increasing exponentially and the knowledge-intensive sector will increase investment and economic growth in the area and this development will encourage workers back into the city.
"This scheme will showcase Nottingham's growing knowledge-intensive services sector and it will improve access to specialist business support, including mentoring, coaching and counselling, workshops, consultancy and business advice, alongside improving networking and engagement between knowledge-driven, innovation-led enterprises.
"The scheme will also enhance the vibrancy of Nottingham city centre at this critical time as it recovers from the pandemic."
The office development is planned on vacant land off the tram line situated between Arkwright Street, Queen's Road and Crocus Street.
The city council has agreed to enter into a 999-year lease at a peppercorn rent with the purchaser of the site to ensure access to the tram infrastructure.
A report from the authority states: "Disposal of this site will facilitate the development of a high-quality Grade A office building on a key city centre gateway site by a public sector partner."
The seven-storey Crocus Place development was given the green light in June 2019 and it was reported at the time that it could provide space for about 1,150 workers.
The building is set to be built on land that was formerly an operations base for the tram extension.
Meanwhile, construction work has finished on the huge Unity Square building in Queensbridge Road, where HMRC staff will moved into.
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