The former home of Josef Fritzl - who held his daughter captive in the cellar for 24 years - could be used as accommodation for refugees.
Lawyer Walter Anzböck, who manages the liquidation of the estate is in charge of the plans, which comes after failure to sell the property.
The proposals have not yet been approved but an early quota estimated that up to 150 asylum seekers could make Fritzl's house their home.
Josef Fritzl's house could be a place of refuge for hundreds of displaced people
Anzböck said that the council could not afford to let the property sit empty, and that he planned to discuss the feasibility of such a plan with the Red Cross.
The local council is set to make the final decision on whether to use the building to house refugees, which may be unlikely as Mayor Punchebner told the Kurier newspaper that she had not yet been officially informed of the proposal.
Fritzl's house, which sits at a market price of €200,000 (est. £145,000) has not yet attracted a buyer and has been empty since the crimes came to light.
The cellar in which Fritzl performed horrendous attacks on his trapped his daughter has been filled with concrete to ensure no one can ever enter it again.
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Fritzl, who is now 80-years-old, is currently serving out his life sentence in Stein prison.
The news comes as the European Union has decided to relocate tens of thousands of refugees either among Greece and Italy or states such as Croatia and Austria.