The royal College of Surgeons in Ireland has approached Dublin Corporation with a £30 million plan to gain ownership of York Street, off St Stephen's Green.
The college says it will rehouse all the Dublin Corporation's 132 tenants in a new building on York Street. It is consulting tenants in an attempt to get agreement on the plan.
A RCSI spokesman, Mr Barry O'Brien, said the college needs to expand its premises to compete with rivals abroad. It also wants to provide accommodation for its overseas students who are being forced out to the suburbs to find a place to stay.
The college already occupies one side of York Street and faces onto St Stephen's Green. On the other side is a Salvation Army hostel and the corporation flats. The Salvation Army's York Street address is among the best-known in Dublin.
The RCSI has recently acquired the hostel in return for providing an alternative building in nearby Longford Street Little. It will continue to be used by the Salvation Army until the new building is ready.
It wants Dublin Corporation to transfer ownership of the remaining buildings to it "under certain restrictive covenants". It says it will enter into a partnership with the York Street residents for the future management of the redeveloped housing. Meetings with the residents began this week.
Dublin Corporation is believed to have made it clear that its interest in the proposal will be influenced by the attitude of the tenants.
"We plan a roof-top all-weather pitch on top of one of the buildings," said Mr O'Brien. "This would be available to local groups such as Aungier Celtic."