New plans have been submitted for the demolition of a section of the historic Rauceby Hospital to make way for a housing development.
Proposals by Project 2000 (Greylees) Ltd would see 43 new homes built following the demolition of Orchard House on Murrayfield Avenue.
If approved, plans would see homes built within the settlement of Greylees, west of Sleaford.
A total of 12 two-bed properties, 15 three-bed properties, 10 four-bed properties and six five-bed properties would be built on the site.
Of this, eight two-bed properties and one three-bed property would be affordable.
Building work on the Victorian-era hospital, originally called Kesteven County Asylum, started in 1897, with the facility opened in 1902.
South Lincolnshire Community and Mental Health Services NHS Trust closed the main hospital building in the 1990s, but retained Orchard House as its headquarters.
The main building has been abandoned for several years, with other parts of the site being redeveloped from 2004 onwards.
Previous plans for 106 homes were rejected by councillors last year, who were concerned about ruining the history of the hospital.
The new proposals will be discussed by councillors at North Kesteven District Council at a later date.