Land housing the seafront pumping station at Ventnor is being sold by the Isle of Wight Council.
The council is selling the land to Southern Water, which owns the building.
The move could make it easier for Southern Water to find a buyer to take over the site.
A spokesperson for Southern Water said: "We do not have a new owner for the pumping station yet.
"We are currently in the process of buying the land from Isle of Wight Council. Once this is complete we can then go to market for a new owner.”
The council confirmed the sale was in process.
The pumping station was designed and built to incorporate a viewpoint for residents and visitors to enjoy, and it was previously used by Ventnor Fringe as a quirky bar venue.
But it was closed to the public five years ago, in the summer of 2018, for repairs, and the public access never re-opened.
At the time, a structural survey found the bandstand unsafe for people to use.
Last year, Southern Water said it was trying to find a buyer for the site.
The latest move is to help move that idea forward.
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