The mill is said to be haunted, after staff working in the building reported ghostly happenings, and was recently featured in an episode of Channel Five’s paranormal investigation series "Ghost Dimension".
Property auctioneer Pugh will include the former mill in its online auction of more than 50 properties on May 24, with a guide price of £140,000.
Kirklees Council has given planning permission for the building to be redeveloped into 12 one-bedroom and eight two-bedroom apartments. The permission also includes a ground-floor wine bar.
The 19th century mill building was originally home to George and Henry Jessop’s men’s tailoring business and has most recently been used as an auction room.
The property’s reputation for paranormal activity stems from multiple staff accounts of spooky occurrences such as unexplained dark shadows and a rocking chair that rocks without human assistance.
Will Thompson, associate director at Pugh, said: “The building’s unusual reputations adds an element of curiosity to this particular lot in our upcoming auction.
"This is an exciting development opportunity to create apartments and a wine bar in the centre of Batley. It’s a great location, with easy access to Leeds, Huddersfield and Bradford.”
He added: “Millions of pounds are being injected into towns across Kirklees as part of ongoing regeneration plans, including in Batley.
"There are lots of exciting changes happening in the town and it looks to be a sound place to invest.”
Bidding on Jessops Mill, and the other lots in Pugh’s online auction, opens on May 24 and closes the following day.
To view the full catalogue, go to www.pugh-auctions.com