Homes will be created in a historic city centre building if plans can be agreed with the council.
The upper floors of grade-II listed Westminster Buildings, next to Kirkgate Market, could be converted into 20 flats.
The former hotel, built in the 1870s, was put up for sale by Leeds City Council in February this year to help raise cash for the authority.
Now the council will decide on planning permission for a housing scheme at the site on New York Street.
A planning report by Den Architecture said: “The area is well connected with a short walk to Leeds city centre, with good public transport links and Leeds Central Bus Station nearby.
“The ground floor is sub-divided into separate retail units with the upper floors, currently vacant, most recently used for office accommodation.”
A heritage report said the proposed conversion would cause minimal harm to the appearance of the building, part of Leeds City Centre Conservation Area.
It said: “The proposed external works are relatively minor in extent.
“Given this, the external fabric of the building and its architectural character will be largely retained.”
The site was formerly known as Westminster Temperance Hotel and was listed by Historic England in 1986.
The upper floors were most recently used as offices by the council and Leeds Citizens Advice Bureau.
