DONCASTER Council could face legal action if Thorne Hall is allowed to go to ruin.
The Grade II listed landmark failed to sell at auction in London this week after no-one met the reserve price of £300,000.
Auctioneers Lambert Smith had said there was considerable interest the building.
But Thorne councillor Martin Williams is concerned the building is still facing an uncertain future and is planning a meeting with lawyers.
He said: “I think the next step should be to put it up for auction somewhere in Yorkshire, to see what happens if it goes on the market in this region.
“It is a Grade II listed building and it needs protection. I am meeting a planning barrister next month to discuss it.
“The council cannot take itself to court if the building is not maintained, but I may look into it. But my first option would be to try to sell it locally. I don’t think leaving it to become neglected is a good example to set.”
The building has been out of use for around five years, since it ceased to used as an area housing office.
Coun Williams believes it may cost anyone who takes over the building around £1 million to renovate it.
Director of Regeneration and Environment Peter Dale said: “Thorne Hall failed to sell at auction on Monday despite being advertised nationally.
“Since the auction we have arranged another viewing and it remains available for sale.
“We are committed to selling Thorne Hall, but any buyer will have to abide by the terms of its Grade II listing.
“The hall will be put up for auction again in the autumn.”