The council moved office-based staff out of its St Aldate’s Chambers to the Town Hall, just a stone’s throw away, last September.
It originally planned to rent out to floors of St Aldate’s Chambers but changed its plans when the tenant offered to rent the whole building.
But the offer fell through earlier this year.
However, a council spokesperson said: “We have agreed terms with a new tenant and expect to complete that transaction shortly.”
The council decided to lease the building after an increase in working from home.
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A report presented to cabinet in September 2022 said while individual officers and teams had different requirements, a staff survey carried out in mid-2021 indicated that the majority typically wanted to work from home three days a week, and in the office two days a week.
The five-floor St Aldate’s Chambers building, which was built in the 1930s as a telephone exchange, was revamped for use by ‘outside tenants’.
The council applied for planning permission to strip the inside, and make changes to the front facade, which is a significant example of mid-20th century design.
Meanwhile the authority said work to get the town hall ready to be used by staff could cost up to about £1.3million.
At the same time council reports stated the town hall will need “significant repairs and maintenance”, which could cost up to £14million over the next 30 years.
An Oxford City Council spokesperson said: “With more hybrid working and a more efficient use of the office space in Oxford Town Hall, we have the opportunity to vacate and rent out St Aldate’s Chambers.
“This will provide a very significant long-term income stream to help fund the city council’s key services in an increasingly challenging financial environment for local authorities.
“We had hoped to start renting the building earlier this year, but we were unable to complete the letting to the original tenant.”