The HSE is assessing the suitability of two Killarney sites for a primary care centre.
Replying to a query by Killarney councillor Marie Moloney, the Health Service Executive (HSE) confirmed it has begun a detailed feasibility study of the Columbanus Hospital and District Hospital sites.
In their response to Cllr Moloney, the HSE stated that it fully recognises the ongoing need for a primary care centre in Killarney.
The municipal district refused to grant planning permission for a centre on the Áras Phádraig site in July, following significant public objections.
The HSE added that it has begun a detailed feasibility study of the Columbanus Hospital and District Hospital sites in Killarney to mitigate further risks and to get the best location for the facility.
The executive says this assessment is essential to determine the most cost-effective way to build a purpose-built, permanent primary care centre on its own land.
It also stated that this would establish a clear pathway to progress the project.