Trustpower's Oamaru-based customer service centre could move into the former RSA building in Itchen St, Oamaru.
The Waitaki District Council-owned building has been largely vacant since the discovery of asbestos in the ceiling of the lower floor in December. Asbestos removal work began earlier this month.
The electricity generator and retailer's community relations manager, Graeme Purches, confirmed the company had been in talks with the council about relocating its Lower Thames St operation to the vacant building.
He said Trustpower employed about 70 people in Oamaru, but the number of staff could increase.
Waitaki Mayor Gary Kircher said on Thursday he would not confirm which company the council was speaking to about a lease for the two-storey building, which opened in 1951.
"We're not saying anything. It's not at a stage where we can confirm anything,'' Mr Kircher said.
"We are talking to a potential commercial tenant, but there is still a lot more work to be done to decide whether that's going to work or not.''
He said the council's focus was to remove the asbestos and to determine what strengthening work was required in the building.
