Former vocational education minister Meegan Fitzharris announced in June that the government was examining options to relocate Reid CIT to a new site in Woden's town centre.

Part of the existing Reid CIT site is set to be redeveloped by UNSW, which wants to use that space, along with a large parcel of land on Constitution Avenue, to create a second Canberra campus.

The Canberra Times understands a preferred site in Woden's town centre has been identified, with an announcement likely in the next fortnight.

As that announcement looms, the government is pressing ahead with the demolition of the old Woden CIT site, which closed in 2018 following the opening of a new Tuggeranong campus.

The planning directorate has published a tender for work to demolish the eight buildings occupying the prime block of land near Canberra Hospital.

A property condition report included in the tender documents showed most of the campus's structures were either ageing or in need of immediate repair.

The successful tenderer would also be required to remediate the block, which is contaminated with asbestos and lead-based paints.

The future of the site, once cleared and remediated, remains up in the air.

The Woden Valley Community Council had urged the government to delay demolition works at the old campus until it had finalised a plan for the site's future.

Speaking at annual report hearings this month, Urban Renewal Minister Rachel Stephen-Smith said the government would soon announce a temporary use for the site.

Ms Stephen-Smith said further community consultation would be required before the block's long-term future was finalised.

The site is zoned for community use, and Ms Stephen-Smith said there was "no plans to change that".