Newark & Sherwood District Council has signed an agreement with Severns (Ollerton) Ltd to transform the Grade II-listed building – which has stood derelict for many years.
The council says a deal was struck after an open market process, which resulted in identifying a preferred developer.
Now Severns (Ollerton) Limited is required to submit a planning application for the conversion – which will include a public consultation and outline the exact plans for the premises.
The planning application is expected to be submitted in the summer.
If approved, the developer will be required to build out the scheme under a lease agreement with the council.
The purchase of the building will only take place when work is finished to the satisfaction of the council.
Ollerton Hall has been vacant for many years and was brought back into the ownership of the council in 2016.
Coun David Lloyd council leader, said: “Ollerton Hall is an important historic landmark which had sadly suffered a number of false starts over the years and remains a vacant gem in need of attention.
"The innovative and collaborative approach we are now taking to bring the building back into long-term use will mean that the building will once again make an important contribution to the area.”
Coun Neal Mitchell, who represents Ollerton at the council, said the building plays an important part of the town's heritage and it was ‘wonderful’ that it will finally be brought back into use.
"From the outset it has been a clear priority for everyone that the restoration must be sympathetic to the surrounding village, and I am excited to see the transformation plans that will secure the future of this iconic building,” he said.
Meanwhile, Adam Cavell, director of Severns (Ollerton) Limited, said his firm was ‘excited’ to be given the opportunity to breathe new life into the ‘remarkable’ building.
"Ollerton Hall was once a family home and we believe it has the potential to be transformed into high quality apartments for people to call their home, once again, for generations to come,” he said.
“We look forward to the next stages of the process and for the future of Ollerton Hall.”