Oxfordshire County Council has received costings for the refurbishment of The Firs, in St Paul’s Way, which was used as a residential care home until it closed four years ago.
The new centre would offer short stays for adults with learning difficulties who live with their families, providing an opportunity for carers to have a break.
It would be run by an outside provider and could be open by April.
Councillor Caroline Newton, who represents Watlington on the council, said: “I look forward to a swift resolution to the fate of The Firs.
“It has been frustrating for local residents to see such a potentially valuable facility like this vacant and falling into disrepair, quite apart from the cost to the taxpayer while it has remained empty for so long.
“I know how important respite support is to disabled people and their carers and I’d really welcome the council strengthening the provision of the service in this area.”
The former home offered a 24-hour service but was closed in December 2008 and residents were offered alternative accommodation.
A council said the new centre would be “an expansion of respite care services in South Oxfordshire”.