Arthur Clark Care Home in Caversham was closed amid cries of protest from residents and their families in July 2013 and The Chronicle revealed last month the site is still abandoned one year on.

But Reading Borough Council has now begun the first stages of the official tendering process to regenerate the site and is on the hunt for a developer to turn it into 40 elderly care flats.

Borough adult social care leader Councillor Rachel Eden said the project will not only provide residential care, but also replace the activities lost with the closure of the Albert Road Day Centre next door to the care home.

She added: “It really is good news, it’s going to be lovely accommodation. “We are hoping to get 40 flats on that site and we are asking the market to come back with proposals.

“We have stressed there needs to be room available to provide day activities and services on the site for local people who live in the community, which is really positive news as well for people in the area.”

The official tendering process began last week and council spokesman Oscar Mortali said the contract is expected to be signed by the end of the year. If proposals are approved by the council’s planning applications committee, work could begin next year.

Cllr Eden said the site will provide support to people under the Government’s proposed care cap which will be introduced in 2016.

Under the plans, elderly people with the most severe needs will have the cost of their care capped at £72,000.

Cllr Eden warned that the cap could put extra pressure on other services but said: “It is very exciting and will help to provide services for people who have been affected by the care cap.

“But it is not an answer to the situation.”