Rose Castle Foundation says it remains committed to buying Rose Castle, despite its first offer being rejected by the Church Commissioners.
The building near Dalston will now be made available on the open market.
The Foundation was given two years without competition to come up with a viable offer.
It says it's now made one, thanks to an anonymous donor, but the Church Commissioners says the offer isn't viable.
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Kerrie brings you Saturday's forecast for Cumbria & The Scottish Borders
Another cold and icy night but cloudier, wetter, windier and milder from the west by dawn
Icy patches will be a hazard on some untreated roads, pavements & paths. Some injuries are possible from slips and falls on icy surfaces