Speaking at a public accounts committee on Monday, Home Office permanent secretary Sir Matthew Rycroft confirmed that the site was no longer needed.
He said: “Ministers decided only last week that we no longer needed it in the Home Office, either for detained or non-detained accommodation.
“So we will be working with our colleagues to see if it would be suitable for any other part of government and, if not, then we will be selling it.”
Dr Kieran Mullan, the Conservative MP for Bexhill and Battle, welcomed the decision.
“I want to thank campaigners and cross-party councillors across all layers of local government for fighting against this plan,” he said.
“I’ve done all I can to support them. I am especially pleased for the residents of the Northeye Estate for whom the uncertainty and worry is over.”
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