The Third Avenue United Church in Saskatoon is known for its exceptional acoustics. (CBC)

Saskatoon's Third Avenue United Church, a cherished building in the city that needs substantial repairs, is back up for sale after a proposal to acquire the property was formally rejected.

A non-profit group, the Third Avenue Centre, was offering to acquire the building for $1.86 million and undertake a number of renovations to preserve the space as a concert venue.

However, that offer was turned down by officials overseeing the church who have also said the building should now be put on the open market, to be sold by the end of the 2013.

A note about the decision, which was provided to media outlets, said the move to reject the non-profit's proposal was made "after a long and heart-searching discussion" by church officials.