The archdiocese announced Tuesday that it can't afford to build a new facility for Lansdale Catholic Regional High School.
The existing school has occupied its location in Lansdale since 1960.
Five years ago, officials announced a plan to construct a new building about 10 miles away.
Now, the church says the 68-acre parcel reserved for the project in Hilltown Township will likely be sold.
The archdiocese has recently sold several properties to close a budget deficit.
They include a mansion known as the cardinal's residence and a vacation home for priests at the New Jersey shore.