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
A man from Northampton has found internet fame after a video of him failing to climb a wall on a Tough Mudder challenge went viral
Some showers at first this evening, gradually clearing overnight. Tomorrow, a mostly dry day but with a few showers.
A good deal of cloud this evening and overnight, with showery outbreaks. Tomorrow, generally cloudy, with some sunny intervals.