WARRINGTON Borough Council looks set to sell a former school gymnasium to the town's Islamic Association for £60,000 less than the current market value.
The gym at Bewsey Old School would be converted into a mosque and community centre.
It is currently valued at £260,000 but the council is being recommended by officers to sell the building for £200,000.
Warrington Islamic Association (WIA) already leases half the property for religious and community purposes and pays a licence fee of £3,000-a-year. The other half is run by the council as a community centre.
A recent structural survey has revealed that extensive repairs are needed to the building at a likely cost of £196,000.
The deal would restrict future use of the building to religious and community education purposes.
Should the WIA wish to dispose of the property in the future, it would have at first have to offer to sell it back to the council.
A report to be considered by the council's executive board indicates it is not proposed to market the property by auction or tender but to contract direct with the WIA as the current occupier.
However, the council may be required to justify the sale should any other potential purchases come forward wishing to purchase on a similar restricted use basis.
A council can  sell a property at less than market value if the disposal cocntributes to the promotion or improvement of social well-being of the area.
A condition of the sale will be that the community centre in the other half of the building remain available to the whole community.
The WIA says it wishes to work in partnership with the council in developing future community events at the property and is seeking the nomination of a senior council officer onto the community centre board.
If the WIA failed to comply with the restriction on uses of the building, the council could take action and, ultimately, take back the property.