The Leicester Haymarket Theatre, which closed in 2007, is costing the council £150,000 a year on a lease that has another 60 years to run.
Leicester City Council is now hoping to find a developer by advertising the property online for a price in the region of £500,000.
If the council continues to lease the property, the final cost will total £9m.
The theatre was once considered one of the country's top provincial theatres, attracting stars like Anthony Hopkins and Peter O'Toole.
More top news
Ashleigh Butler paid tribute to her beloved pooch in an emotional tribute on Instagram.
The family of a man who died in hospital nine days after being arrested have urged witnesses to contact the police watchdog.
They say staff who already pay for parking permits struggle to get a space and are being further penalised.