A 120-bed care home is to be built on the site of the former Blawarthill Hospital in Glasgow.
The scheme is part of £80m being put up to build five care homes across the city to accommodate 600 elderly people.
Four day-care centres will also be built.
Sites have already been identified four of the care homes.
Work has already begun on the site in Bardowie Street.
Glasgow City Council has also struck a deal with NHS Greater Glasgow and Clyde that will see a new care home built on the Knightswood hospital site.
All five council care homes will contain full en-suite facilities and a range of communal spaces with easy access to outdoor spaces and gardens.
Liz Cameron, the council's spokeswoman for development and regeneration, said: "We are delighted to have reached agreement with the NHS over the Blawarthill site following long and detailed negotiations. Once the site became available, it was quickly seen as the obvious location for the council's new care home in west Glasgow.
"A care service has been provided at Blawarthill for generations and I am very pleased this decision will help that continue.
"Residents in the surrounding communities of Knightswood and Yoker were very determined to see a first class care centre on the site and I am sure they will be very pleased with the home once it is completed.
"It will be innovative and greatly enhance the quality of care available to vulnerable, older people in the area.
"This deal represents great news for west Glasgow and the city as a whole."
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