Grade II listed Fearnville House, off Dib Lane, Oakwood, has been on Leeds City Council's buildings at risk register since 2009.
Now, though, Leeds-based developer CW Langton is looking to breathe new life into the property, which over the years has suffered fire damage as well as the ravages of dry rot and vandalism.
CW Langton wants to build eight semi-detached family homes on land surrounding Fearnville House, with the funds generated by that scheme being used to refurbish the historic mansion and turn it into five townhouses..
The developer has agreed a seven-figure finance package with Lloyds Bank, subject to the work getting the green light from council planning chiefs.
CW Langton director William Langton said: "We are excited to have submitted a viable scheme of development to the council which holds the opportunity to save Fearnville House, and allow this once grand, character property, to again form family homes for generations to come. Now is the opportunity to stop any further dereliction.”
Built in the early 19th century, Fearnville House was for many years home to a succession of prominent local figures, including Alderman Alfred John Knowles.
More recently, it was turned into flats before being sold by the council to a nursing home operator.
The building, which has stood derelict for more than 15 years, is now owned by CW Langton.
Its story was touched by scandal in 1919 when a police raid found evidence it had been used as the site of an illicit whisky still.