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Alternative accomodation will be found for all the residents as part of A Place to Live Project.
The Minstrels Gallery is a Grade II listed 18th century building, which was converted in the mid 1990s to an eight bed home for people with learning disabilities.
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Hide AdWest Sussex Health and Social Care NHS Trust are looking to sell the building with planning permission for flats and re-invest the money in the NHS.
West Sussex executive director Neil Perkins said: "The Trust is working in partnership with West Sussex County Council social and caring services to offer more choice to people with learning disabilities.
"We have also been working very closely with service users, carers and relatives to offer increased choice of where they live and with whom.
"For many years the residents at The Minstrels have been far from community life and it is important that they are housed in the community, with the community, to lead a more independent and fulfilling life."