The Old Corn Mill, next to the Trent and Mersey Canal in the town, dates back to 1863.
Estate agents dealing with the sale say the unique property has the potential to be transformed into plush town centre apartments.
The mill is right next to the new Tesco store being built in the town and in an area that is due to be redeveloped.
Rugeley Town Council leader Neil Stanley said the historic mill was an attractive property to potential investors as the town was currently on the up. He said: "It has been empty for quite some time now. It has from time to time been occupied with small workshops but nothing permanent.
"It's quite rundown but with the Tesco development and the canal path being enhanced, it becomes a very attractive property."
As well as the four-storey former mill, there are cottages on the land surrounding it.
It is on the market with Chase Independent. The company's website says: "The Old Mill has the potential for development into apartments aimed at young professionals whilst the adjoining land would suit new build homes, with the canal side location being an attractive selling point.
"The area is currently undergoing extensive development and will be an attractive addition to the town and surrounding area. The land to the side of the mill would suit a selection of two and three bedroom properties or retirement homes as desired, with canalside views."
A grant is available to the new buyer as the building is located in a conservation area.
Work on the new Tesco store that has been in the pipeline for 10 years started last month and it is due to open in September.