Peterlee Town Council confirmed this week it had entered into an agreement to sell Shotton Hall to the ‘selected bidder’.
The council said the bidder’s vision for the building, subject to planning permission, is to transform it into a special educational needs (SEN) school.
The council said this ‘will be a key milestone in securing the future of Shotton Hall’ and ‘ensuring it continues to benefit the residents of Peterlee’.
Ian Hall, chief officer and town clerk of Peterlee Town Council, said: “We are excited to take this important step forward for Shotton Hall.
“The transformation of the site into an SEN school will address a growing need for specialised educational facilities in the area, ensuring children with additional needs have access to the support they require to thrive.”
The pre-contract agreement was made following a ‘comprehensive market testing process’.
The council said the pre-contract phase ‘will involve detailed discussions and planning to ensure the project meets the highest standards of design, accessibility, and functionality’.
Further updates, including timelines and development plans, will be shared as the project progresses.