Chester-based agents Legat Owen have been instructed to market HM Stanley Hospital in St Asaph, North Wales on behalf of the Betsi Cadwaladr University Local Health Board.
The site extends to 8.33 acres and is identified within the emerging Denbighshire Local Development Plan as being suitable for residential development.
Stephen Wade, director of Legat Owen, said: "HM Stanley Hospital offers a superb residential development opportunity. The site, which sits on the edge of St Asaph, enjoys views over open farm land to the Clwydian Range beyond."
St Asaph, which has recently been awarded City Status as part of the Queen's Diamond Jubilee celebrations, lies alongside the A55 which offers quick and easy access the North Wales coast.