Oxford Community Hospital is set to close for good, with a brand new replacement a top priority for NHS managers.
The 24-bed unit, part of the Churchill Hospital complex in Headington, was shut to new admissions last week after four patients contracted clostridium difficile - the third outbreak of the superbug since Christmas.
In the short term, Oxfordshire NHS Primary Care Trust, which leases the community hospital section from the Oxford Radcliffe Hospitals NHS Trust, is sending patients to its other community hospitals in towns around the county and looking into using beds at private hospitals.
But the PCT wants a new facility in Oxford, Jonathan Coombes, its head of community hospital development and intermediate care, told the Oxfordshire joint health overview and scrutiny committee on Wednesdaymay 21.
He said: "We will not be using the existing facility for patient care in the future. Never say never, but at this time it's not suitable without considerable remodelling and rebuilding.
"The fabric of the building has not suddenly become worse - it's something we have been concerned about for some time. We conducted a deep clean in March - yet we had another outbreak in April.
"The medium to long-term plan is to replace the hospital with a brand-new facility, somewhere in Oxford, as soon as feasibly possible."
The hospital treats about 300 patients a year recovering from treatment for a range of conditions.
The scrutiny committee's chairman, Dr Peter Skolar, said it was paramount the PCT found replacement facilities locally.
He said: "Community hospitals by definition are in the community. As long as the PCT provides the same services locally, I will be satisfied."
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