Fleetwood Hospital is to be sold, it has been confirmed this week.
But the Blackpool Teaching Hospitals NHS Foundation Trust has quashed rumours that part of the building, on North Albert Street, is to be used to house homeless people.
Instead there are plans to lease parts of the building back for community activities, to ensure more effective use.
A spokesperson for Trust said: “To ensure appropriate use of the Fleetwood Hospital estate, the board has instructed commercial property agents to dispose of the buildings on a sale and lease-back basis.
“The proposal is to dispose of the property to allow better use of the building which is currently two-thirds redundant. The main focus of disposal is to ensure vacant areas of the site are restored and will be allocated to a use that will benefit the local community now and in the future.
“We can also assure residents that the areas of the hospital, currently being used for patient services, will continue to operate with no change for staff or patients. Services will remain in Fleetwood and staff employed there will remain in position.”
The property will be advertised to potential buyers shortly.