An application for permission is now being considered by West Lindsey District Council.
It requests permission to change the use of the Royal Oak, on High Street, North Kelsey, into a dwelling.
A statement submitted with the application says the pub in the centre of the village has been "closed as a business for approximately three years, due to lack of financial viability."
It adds: "Another public house, The Butchers Arms, remains in the village, in Middle Street, but it is very unlikely that the village could ever support two public houses again."
The Royal Oak was originally a dwelling house, built in the late 18th or early 19th century.
In the submission to the council, the building is described as being a redundant pub.
Planners will now consider whether to grant permission for the conversion.