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
Nosakhere Stephenson, known to his contacts as ‘Nosa’, is one of 18 men who were implicated in the supply of guns and ammunition
Heading to the shops on Black Friday? Help us tell the real story of the day by letting us know your experience.
The biggest shopping day of the year is almost upon us, so what is Black Friday and how can you get the best deals?