Hopes that a closed care home for elderly people in Aberystwyth could reopen under a new owner have been dashed.
Ceredigion councillors heard a deal to sell Bodlondeb, which closed in January 2018 amid protests, had fallen through.
They have agreed to re-advertise the building for sale as social housing.
Council leader Ellen ap Gwynn said the situation was a "great disappointment", as it was hoped the buyer would have run the site as a nursing home.
The Plaid Cymru-led cabinet revoked its previous decision to give preference to buyers who would run the site as a home for elderly people or those with dementia.
The building at Penparcau will now be offered for sale as social housing with a three-month deadline, according to the Local Democracy Reporting Service.
The site will go back on the open market if no suitable landlord can be found within that time.
Ms ap Gwynn said: "My hope was that we found a company or business to take over and invest in the need for a nursing home.
"It's not legally possible for local government to run a nursing home - we can run care homes but not nursing homes and what is really needed here is the nursing element."
Cabinet members were told proceeds from any sale of the property would be ring-fenced for investment in council-run residential homes.