Sheffield City Council has received a number of bids for the site after announcing plans to lease the Parkwood site to a developer for potential outdoor recreational and commercial use.
After a short extension was announced earlier this month, the Council will now work with the shortlisted investors to develop the plans further, a process expected to take several months.
Edward Highfield, director of city growth at Sheffield City Council, said: “There is clearly a lot of enthusiasm for the Parkwood site as part of the city’s wider Outdoor City ambitions.
“We received a number of very promising bids and were very pleased with the overall quality of submissions. We will now evaluate the bids carefully to get down to a shortlist and enter detailed commercial negotiations with a small number of bidders that we take through to the next stage.
The Council will now carry out more in-depth work with the shortlisted parties, asking that they work with the Friends of Parkwood Springs and other local groups to develop proposals that are of benefit to the surrounding area.