Cheshire West & Chester Council is marketing the former dog racing site to a residential developer.
The 10-acre site in Thornton Road is for sale by way of negotiated tender. Part of the development agreement could include the construction of 30% affordable homes which the council would buy from the developer once the project is completed.
The council would retain the freehold interest in the site.
The stadium was bought by Liverpool-based director Phillip Warren in 2013 and was renovated to include new racing facilities and kennels. However the stadium closed in early 2014 and has been vacant ever since.
The council is working alongside Warren's company Ellesmere Port Greyhound Stadium on the sale.
Offers for the site are to be submitted by Friday 20 March.