A 1.5 acre site at Ashgate Road is being put up for sale by Chesterfield Borough Council to be turned into a housing development.
The land, which has been designated for houses since the mid-1990s, consists of a large car park and buildings.
The council has a requirement to build 380 new homes each year and currently has a backlog of 800 homes to be built in addition to these.
Councillor Amanda Serjeant, Chesterfield Borough Council’s cabinet member for town centre and visitor economy, said: “The land at Ashgate Road has been identified for housing development for nearly 20 years and was only ever intended to be used as a car park on an interim basis until the land was sold for development.
“We have a range of parking options available around the town with spare capacity to suit regular commuters who want to park near the town centre.
“It will be at least six to nine months before the car park is sold and until that time Ashgate Road will continue to operate as a car park. Users will be given plenty of notice before it is closed and made aware of alternative car parking arrangements.”
The council will use the period before the sale to look at whether it is possible to have a £1 a day car park site in the town centre area.
Monthly parking savers are also available for £20 per month at the West Street or Queen’s Park Annexe car parks, equivalent to £2 each day.