Derby Magistrates Court and the old Full Street police station could be sold off to build a new housing and leisure complex.
The land is worth millions of pounds
Derbyshire Police Authority, which owns the police station, has approved a bid from a developer who wants to build 119 new and 38 converted apartments on the two sites as well as bars and restaurants.
Derbyshire County Council, which owns the magistrates' court, is expected to agree to the sale.
The city council cabinet will consider whether to sell off its part of the site - the police station car park - at a meeting next Tuesday.
Deputy leader Councillor Philip Hickson says it is one of the city's prime pieces of real estate.
He said: "It must be one of the most valuable sites in the city. We are talking about millions of pounds.
"It's probably the most expensive piece of land in Derby."