Douglas council says it wants to see a sheltered housing complex built on the former prison site on Victoria Road.
The council will be asked to support the proposal, put forward in response to a government consultation, at its monthly meeting next week.
Councillor David Ashton says the site offers a prime opportunity to increase the stock of sheltered housing, much needed for a growing elderly population:
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Carers: 'They are often the quiet heroes of our Island'
It's believed there are around 1,000 young carers on the Island
Hooper: 'Time to bite the bullet and build new hospital'
MHK says government should be planning replacement for RDCH
'No final decisions' made yet about relocating dementia patients says Manx Care
Meeting due to be held with residents, families and staff
'We want to provide a facility for almost anybody'
Two women have one year keep Ballafesson Hall from being sold on open market