Rehabilitation services could move from Samarès Ward to St Ewolds Residential Home.
New Infrastructure Minister Andy Jehan has told States members the government is proposing a nine year lease for part of the building on Trinity Hill from the Parish of St Helier.
St Ewold's has twenty ensuite bedrooms, gardens, dining and sitting rooms and staff and office areas.
The relocation of Samarès Ward will allow for the full demolition of Overdale so work can progress on building a new acute hospital here.
Earlier this year, the then Health Minister Karen Wilson said Samarès Ward would remain at Overdale 'for the foreseeable future' to provide continuity of care for patients.
The ward was closed in July 2020 during the Covid-19 pandemic and services moved to Plemont Ward at the hospital.
A petition, and States proposition from former Senator Steve Pallet demanded it be reopened before March 2022 after patients complained about the quality of facilities at Gloucester Street.. That eventually happened in August 2022.
Plemont Ward has been undergoing a £1.4m refurbishment, due to be completed this month. It had been earmarked as the new base for rehab, but the previous Health Minister said last month it would be used as an acute ward instead.
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