Members of the Highland Council's Finance, Housing and Resources Committee have given their support and approval for the regeneration of the former Fort William Secondary school site.
The site, which is located at the south end of the town centre, will serve as the location for the Council's new main offices.
The next phase of the project will involve the development of the proposals to achieve a preferred option with both local key stakeholders and staff.
Commenting on the announcement, Councillor Thomas MacLennan said: "This is a win:win situation for Fort William.
"We save the Council Tax payer money by delivering our Services more cost-effectively and efficiently and we regenerate a building near to the centre of the town which has lain empty in a derelict state for 25 years."
A target of completing the project by 2016 has been set.
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