Dunedin Mayor Dave Cull says the money spent on buying the Carisbrook stadium two years ago should be recouped in its sale.
Dunedin City Council voted on Thursday to sell the stadium as part of its draft annual plan.
Mr Cull says the site was bought for $7 million and has plenty of scope to be developed into an industrial park.
It was suggested the ground be kept for the community to use as a multi-use facility, but it was found the cost was too high.
The Otago Rugby Football Union is due to leave Carisbrook in October.
The draft plan will be open for submissions from mid-March.
