HMS DAEDALUS is up for sale. The Ministry of Defence is putting the 96-hectare site in Lee-on-the-Solent on the market.
Now the race is on to make plans for its future.
Government proposals for an asylum centre collapsed last year after hitting huge public opposition.
But other government departments will be given a chance to consider how they could best use Daedalus before it is advertised on the open market.
The group set up to fight proposals to use the buildings to house asylum seekers are delighted at the news.
Daedalus Action Group chairman John Beavis said: "I'm absolutely delighted that they have made this decision at last. It's only right and proper as the site has been empty since 1996.
"We need to get all interested parties together to see how we can best develop ideas. Hopefully something good for the community can come out of all this."
Fareham councillors first mooted the idea of a Daedalus Strategy Group, made up of Fareham, Gosport and Hampshire councils, and local residents' associations.
Civic leader Sean Woodward said: "It's a huge issue because Daedalus could potentially take 4,000 houses and the thought of that concerns me a great deal. We had hoped to get together to purchase the land the police and coastguard use for their spotter plane and retain it as an airfield, so that suggestion could be back on the table.
"But what is desperately urgent now is for us to sit down and really thrash out what we think the future should be."
Hampshire County Council leader Ken Thornber added: "This will end any further consideration of using it for accommodation for asylum seekers, a plan that had clearly not been thought through properly.
"What we have now is an opportunity for future development on the site that will have the potential to benefit the community and to involve them in discussions right from the outset.
"By involving the residents, local authorities and other key stakeholders, there is a chance to discuss infrastructure requirements such as schools, health facilities and roads."
The site lies 80 per cent within Fareham borough and 20 per cent in Gosport, but part of the Gosport land is to be retained for service families accommodation.
Gosport chief executive Malcolm Crocker said: "We would like to see jobs, jobs, jobs. Our priority for our part of the site would be for employment."
Residents' group NeighbourLee said it had not formulated an opinion on what it would like to see at Daedalus.
Among ideas from residents in Lee-on-the-Solent were a racecourse, sports centre or golf course.
But everyone of those consulted by the Daily Echo on the streets of Lee-on-the-Solent was against more homes.
Options include retaining the airfield, a business or industrial park, community hospital or mineral extraction plant.
No price has been put on the sale, which will be managed by Defence Estates, which is part of the MoD.
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