Landowner the Homes and Communities Agency is seeking a developer or builder to take on the three-phase scheme planned for the 47ha site.
The derelict hospital is earmarked for major housing in Sunderland City Council’s local development framework and is covered by an outline masterplan produced by the HCA in 2011.
The successful firm will need to draw up a new masterplan and obtain detailed planning consent for at least 250 phase one homes and start by summer 2014.
Other requirements include interim estates management, demolition and completion of road infrastructure and appropriate future long term management and maintenance strategies for open space and public areas.
Firms have until early March to express an interest. More information at the Delta e-portal.