The Highland Council has purchased an eight acre site from Tesco for £2 million.
The surplus land in Fort William will be used to develop a new hospital for NHS Highland.
In May 2015, the council was requested to take the lead by its community planning partners to secure the site at Blar Mor.
The new hospital will replace the existing Belford Hospital.
The council worked in collaboration with NHS Highland, HIE, West Highland College UHI and the Scottish Government during the course of negotiations.
As part of the deal, once funding is in place to build the facility, NHS Highland will transfer the existing hospital site to the council to develop affordable housing.
NHS Highland and West Highland College will now work with the council to take forward proposals for the site.
Cllr Audrey Sinclair said: "This is a tremendous and long awaited success for the Lochaber area. It is a good example of partners working together to achieve success. The deal will enable the area to flourish with the prospect of a new much needed hospital and additional facilities for the West Highland College."
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