Baggot Street Hospital is being considered as a potential accommodation hub for Ukrainian refugees.
It follows a campaign by local businesses and residents.
The hospital building, which has been empty for two decades, is just walking distance from the Ukrainian Embassy.
Labour Party Councillor Dermot Lacey, says the HSE has confirmed it's put the hospital forward for consideration:
"It is laying empty for over 20 years.
"It is a shameful mark on the area, it is a crazy waste of resources.
"Here's an opportunity to use it well and there is support from the local community.
"But the HSE have dragged their feet on it.
"But eventually, I got a response from them saying that they have at least submitted the possibility of using it to the Department of Integration."
Thousands of Ukrainian students are expected to register in Irish schools from Monday, April 24th as schools return from their Easter holidays.
Education officials estimate there are around 25-thousand places available at primary level - and around 18-thousand at secondary level.
Language supports are also being put in place to help children make the transition.