The site of St James’ Hospital has gone on sale being marketed as the potential location for nearly 300 homes and a care home.
Marketer Montagu-Evans said listed buildings could be converted to create 159 houses and apartments, and 140 homes in new build houses and apartments. Forest Lodge could also be used as a care home, the promotional material suggests.
Portsmouth City Council is looking at putting in a bid for the hospital.
Montagu Evans started advertising the 25-acre site in Milton late last month.
The company is inviting bids for the freehold 'submitted in a plain sealed envelope with no form of identification of the bidder'.
Any new owner could take possession of the vacant hospital, which dates back to 1875, by autumn 2019, Montagu Evans said on its website.
The future use of the former hospital, which includes a Grade II listed chapel dating back to 1879, has been the subject of major concerns from campaigners in recent years.
The marketer said Portsmouth & Southsea Cricket Club will have a lease for the cricket pitch and pavilion in place.
It comes after the Homes Agency proposed building 107 homes at the former hospital grounds, in a separate move.
Solent NHS Trust will keep a small area of the St James’ Hospital land for its mental health services