The News understands Greater Shepparton City Council has been asked to consider buying the facility however it would not confirm that when questioned on Monday.
The facility has been closed since February 2020, after it went into liquidation in November 2019.
Federal Member for Nicholls Damian Drum said Greater Shepparton City Council was presented the case to buy the facility in December last year and it is now up to council to make a decision.
“There is a plan in place to secure the future of the land which involved Greater Shepparton City Council,” he said.
“Myself and Murchison community leaders presented to the council in December why it would be a good fit, so now the next step requires the councillors to make a decision.
“The Department of Health has done work looking into how it can keep DP Jones open and there was interest from different providers.
“This takes it out of the hands of the liquidator and would pay off the debt owed to creditors.
“Once Greater Shepparton City Council purchases the facility they would then move forward with finding an aged care provider.”
A Greater Shepparton City Council spokesperson said council was not in a position to comment.
Mr Drum said the Murchison community had always remained committed to an operating nursing home.
“The nursing home was one of the biggest employers in Murchison,” he said.
“Back in the 1970s the community spent years fundraising to establish DP Jones; many of the community leaders from that era have now found themselves in a situation when they need DP Jones.
“Murchison has made it clear how important DP Jones is to the community.”
Liquidator SV Partners was contacted for comment.