Government says it's going to rent out Knockaloe Farm in the west of the Island to agricultural tenants.
The decision from the Department of Environment, Food and Agriculture comes after a wide consultation into future uses for the Patrick site.
One idea had been to turn it into a heritage centre celebrating its past as a World War One internment camp - but the department says it won't pursue any of the proposals.
It will, however, still host the Royal Manx Agricultural Show.
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