A property sale looks to have scuttled the chances of a new jail being built at the former paper making site at Wesley Vale.
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Site owner Spicers Limited on Tuesday announced subsidiary Tas Paper had entered a centract to sell the land and buildings to a company called Tankris Pty Ltd.
"A sale price of $1.742 million has been agreed between the parties, with a deposit of $170,000 paid by Tankris on signing of the contract," Spicers said.
"The contract to sell is unconditional and will complete in 30 days."
There had been interest in the site from the state department charged with choosing a location for a new jail in Tasmania's northern half.
On Monday, Corrections Minister Elise Archer said 10 potential sites were submitted through an expressions of interest process and were being considered.
Ms Archer said a siting panel was working on a shortlist of suitable sites and would give the state government its findings in March.
The Wesley Vale site is at 226 Mill Rd.
