Several potential buyers are in talks with the University of Central Lancashire over a historic listed building.
The Harris Institute in Avenham has been empty for a year since arts students moved to a new £15m building on campus.
Speculation that it could be sold off for private housing sparked an outcry among graduates and city council leaders.
The institute was built in the late 19th century with cash left by lawyer Edmund Harris who specified in his will that it should be used for educational purposes.
Names of potential buyers have not been released but university bosses have confirmed they do not plan on keeping the building for their students.
Paul Morris, director of facilities management at UCLan, said: "The university is currently in discussions with a number of interested parties but will not be rushed into making a decision in exploring all options to find a buyer with a suitable vision that is in keeping with the building's heritage."
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