Terms have been agreed to sell Plymouth's Royal Eye Infirmary.
The Royal Eye Infirmary is due to move in 2009
Plymouth Hospitals NHS Trust says the building is now too small and is planning to move the services to purpose-built accommodation.
If the Trust's board agrees the building will be sold to the Eagle One Group and leased back until services can be relocated.
It says the rental costs would be about the same as the charges it currently pays on the building.
Director of Planning at the trust Andy Ibbs says the 108-year-old building is no longer suitable:
He said: "It's just too old now to refurbish to enable us to deliver a 21st century service."
The Royal Eye Infirmary's work will continue on the site until services for eye patients can move into the new accommodation in the Planned Care Centre, part of the Vanguard project, in 2009.
It is hoped all the legal work for the sale can be completed by the end of next month.