The land at the intersection of Kitchener and Birch Sts has sat unused since it was bought by the council in 2007 as a possible site for its new headquarters.
The council decided not to start with the headquarters project on the site because of the cost. Since then it has been earmarked as part of Dunedin's waterfront development project.
Council executive officer Ian McCabe said the council had not tried to sell the land.
It had not received any unsolicited offers either.
``Although council has resolved that it no longer wishes to build there, council has not resolved for the land to be used for another purpose.''
Council chairman Stephen Woodhead said clearly it was identified as a key site in the harbourside development.
One option was for the council to sell the land to Port Otago, which it owns, which could then negotiate the sale of the land and other sites it owns in the area as part of the harbourside development
- ``bearing in mind the harbourside proposal is very long term; we're talking decades. It does not need to happen overnight.
``We haven't had any discussions or made any decisions at this point.''
The site could potentially be used for hotel development.
Dunedin City Council chief executive Sue Bidrose said interest in a hotel was expressed when the ``van Brandenburg vision'' was announced.
``We are not in ongoing discussions at present as our focus is the work needed to make this a viable development.
``At that point we will seek to engage with developers and interested parties.''
The waterfront concept was announced last year and includes an array of new signature buildings and public spaces.
Key projects could include a ferry terminal, marine science building and public aquarium, a five-star hotel and a cockleshell-shaped cultural centre.
It could take 30 years and cost hundreds of millions of dollars.
