The Office of Public Works says land it owns in Cavan town will be placed on the market if no alternative public use can be found.
The land at Farnham Road had been earmarked for decentralisation but has never been developed.
This month's meeting of Cavan County Council heard calls for the land to be kept in public ownership rather than placed for sale.
Councillor John Paul Feeley said the land has potential for both the County Council offices and Cavan General Hospital due to its proximity to the sites and called for it to be kept in public ownership.
The OPW says the future use of the site is under consideration by the Commissioners of Public Works.
It says if no suitable use is identified in any state body or Government organisation then it will be placed on the open market.
They say this will be done "if and when conditions prevail, in order to generate revenue for the Exchequer".
