One of Canberra's largest available blocks, the site behind the Red Hill shops went to expressions of interest  in November last year. Tender applications closed in March.

On Thursday, a Suburban Land Agency spokesman confirmed the site was under negotiation and said more information would be provided "some time soon".

The 53,002 square-metre site had 143 public housing units built in the 1960s, but tenants have been moved and the public housing demolished to make way for new housing under Red Hill Precinct estate development plan.

A development application for the precinct was lodged in March 2017 and was approved by the planning directorate in June that year.

It is adjacent to the Red Hill shops and bounded by La Perouse Street and Monaro and Cygnet Crescents.

The precinct will see up to 252 new homes built, with a combination of 108 single detached and terrace-style homes and between 83 and 144 multi-unit apartments.

The estate development is a revision of 2015 plans for about 550 apartments and other homes. Following strong community protest, the government more than halved the planned number of dwellings.

The site was also rezoned for high-density development in February 2017 but the height limit was reduced from six to four storeys.

Demolition started in July last year and finished this month. The block was cleared apart from existing trees were not removed.

The last of the public housing tenants were relocated mid-2017. In all, the government is moving people from 1100 flats, including flats on Cooyong Street, Northbourne Avenue, Red Hill, Griffith, Narrabundah and Woden.

The project is one of 13 sold off as part of the government's asset recycling initiative and the public housing renewal program.