Pub giant JD Wetherspoon are thought to be in talks over taking over a Cullompton hotel.
In a deal worth £650,000 Wetherspoon is looking into a takeover of Cullompton's Manor Hotel.
Last year the company made no secret of its interest in opening a venue in Cullompton.
A spokesperson said: "We are not looking at any particular properties however we are keen to find a suitable site in Cullompton."
In March the company announced it was planning to open more sites in Devon after unveiling an increase in half-year profits.
Tim Martin, the Exeter-based chairman of JD Wetherspoon, said: "The first half of the financial year resulted in a good sales performance and reasonable growth in profits and free cash flow.
"The biggest danger to the pub industry is the continuing tax disparity between supermarkets and pubs. There is a growing realisation among politicians, the media and the public that a level tax playing field will create more jobs and taxes for the country."
The budget pub chain was rumoured to have attempted to take over the pub in 2011 but plans fell through, but discussions about a deal have resumed since the building was vacated by tenant landlords a month ago.
Jimmy Sivlal, who owns the historic coaching inn, has placed the property on the market for £650,000.
But the Grade II listed Fore Street building is in need of extensive repair work.
