There is still no word on the future of the old Maitland Hospital site, two years on from its closure.
It is currently in use by a small number of community health and mental health service providers.
A Hunter New England Health spokesperson said the future of the site will be determined by Property and Development NSW, in line with government guidelines.
"Consultation with local stakeholders will also occur throughout this process," the spokesperson said.
"We recognise the significance of the old Maitland Hospital campus to the community."
The health teams currently using the hospital will remain on-site until alternate accommodation is made available.
The spokesperson said Hunter New England Health has started working with Health Infrastructure to plan a new $22 million Integrated Community and Community Mental Health Services building at the new hospital in Metford, which will house a range of general community and community mental health services.
Maitland deputy mayor Mitchell Griffin said councillors have been made aware of an update about the old hospital site, but are under strict orders not to make the information public.
Cr Griffin said councillors received the update in an email from Maitland City Council general manager Jeff Smith in November.
"We are concerned as there is information being kept from the community," Cr Griffin said.
"This information has a strong impact over the future of the site. It is an important area for the wider Maitland community and residents have a right to know what is going on."
Cr Griffin said the email cited Crown Lands as providing the update, however Crown Lands have said they have not been in contact with the council and do not have any involvement with the old hospital site.
A statement from Crown Lands said "the old Maitland Hospital site is owned by the Health Administration Corporation. It is not a Crown Lands site".