Several potential bidders have an expressed an interest in the former headquarters of Inverness College.
The 1960s-built Longman Road campus has been lying empty since a new £50million facility at Beechwood opened almost a year ago.
It has previously been suggested the prime city-centre location could be earmarked for new homes, or a retail or office development.
Diane Rawlinson, principal and chief executive at the UHI college, confirmed to the Press and Journal last night that there was significant interest in the site.
She also suggested college bosses could aim to select the proposal which would be the most beneficial to the Highland capital.
Ms Rawlinson said: “A number of parties have registered interest in the site.
“However, before making a final decision and proceeding to sale, we are working with a range of agencies to review potential uses and identify those that will be most conducive to benefiting the wider community.”
Highland Council officials have been helping Inverness College UHI and the Scottish Futures Trust prepare a planning guidance document for potential buyers to set out the scope for development.
It would then be up to the successful bidder to lodge detailed proposals for the site, including whether to demolish the existing building or undertake a conversion.
SCDI regional director, Fraser Grieve, welcomed the interest in the Longman campus last night.
He said: “It is good to hear that there is interest in developing this key site and it is important that consideration is not only given to the financial aspects of any deal but the wider contribution that a new development on this gateway site would make to the city.
“I hope that we will see progress on a sale of the old college being made in the near future and look forward to seeing the eventual proposals for redevelopment being unveiled.”
Inverness MP Drew Hendry said: “As one of Europe’s fastest-growing cities it is vital that we ensure that the very best is made of all available local assets and it is encouraging that there has been some progress on putting the Longman campus site back into use.
“Any potential developments of this site should, of course, serve the interests of the local economy and I am pleased to hear that Inverness College UHI are working with others to deliver this.”