The Poolburn Hotel closed last November after former leaseholders Larry and Carman Connell, of Poolburn, decided not to renew their two-year lease.
They had leased the pub from then owner Chris Forrest, who had tried unsuccessfully to sell the property.
Mr Forrest could not be contacted for comment yesterday, but Credit Union North credit manager Julie Cleary confirmed the company held the mortgage on the pub.
PGG Wrightson Alexandra branch manager Don Sparks said he had verbal instructions from Credit Union North to proceed with the sale of the property.
In the next few weeks it would be advertised and offered for tender, he said.
Mr Sparks said a reserve price had not been confirmed.
The Poolburn Hotel had served the southern Ida Valley for more than 100 years.
In 1930, the pub was moved to its existing site on Ida Valley's main road.
Its popularity had grown with the development and increased use of the Otago Central Rail Trail.
The nearest two pubs were situated 10 minutes away, over Blacks Hill, at Ophir and Omakau.
There is another pub about 30 minutes further up the Ida Valley, at Oturehua.
