a community nursing home is to be built in Tallaght, with the HSE looking to buy a site from South Dublin County Council at a knockdown price.
Known locally as the Rat Field, the 8,000 square metre site in Tymon North was originally due to be handed over to the HSE for €1m in 2008.
But the sale collapsed when the HSE failed to meet the payment deadline.
With negotiations again under way for the sale of the property, the price tag attached to the land is thought to have dropped to an estimated €650,000.
The HSE has confirmed that, subject to planning permission, it hopes to build a community nursing home on the site.
The derelict site, opposite a scouts' den, has been a hub for illegal dumping and anti-social behaviour in recent years.
Local councillors have welcomed the development as a positive move to utilise the site and provide a much-needed service in an area with an ageing population.
Local Fianna Fail councillor Charlie O'Connor said the estimated €350,000 drop in the asking price for the site was a "sign of the times".
"It's a good use of public money as far as I'm concerned," he said.
Meanwhile, Mr O'Connor said the need for more services for the elderly in Tallaght is widely supported.
"Tallaght is often seen as a centre with a very young population, but there is an ageing population also," he told the Herald.
"I've heard stories from people who are having to bring their families out of Tallaght and, indeed, sometimes out of Dublin to get care.
Mr O'Connor revealed that he will be seeking a fresh timeline for the renewed plans when he attends a HSE meeting later this month.
The next meeting of the Regional Health Forum is due to be held on November 18, when it is hoped that more details of the plans for the site will be confirmed.