Councillors in Fife have agreed to approve the acquisition of the former Disosynth site at Muiredge in Buckhaven.
At the exectutive committee last week, elected officials were asked to approve the acquisition of 4.4 hectares at an undisclosed price.
The local authority plans to use it for a Low Carbon Investment Park which will complement the existing site at Methil Docks.
The site has been at the heart of a wrangle between Fife Council and the owner, Janette Penman, for several years.
Ms Penman - who bought the land in 2007 for £1.7 million - had wanted to build 65 houses and a carehome on the former chemical works site at Percival Road.
But in 2012, the Council announced it would push ahead with a CPO, which, following approval by the full council in December 2012, has now been promoted and advertised, and is currently with the Scottish Government for determination.
The Council has already secured planning permission in principle with regards to its proposal to build the investment park, with approval already issued for the first phase of infrastructure works at Muiredge Industrial Estate.
However, it was unable to proceed with the full proposals until it had aquired the former Diosynth site.
And now agents acting on behalf of the Council and the owner have reached a provisional agreement for acquisition of the land.
However the conclusion of the transaction will be subject to a site investigation by the Council to determine any issues, such as contamination, which will affect future development of the site.
The Council will aquire the site through capital programme funding, which it plans to recoup following eventual sale of land at the investment park.
Councillor Andrew Rodger had been in favour of building houses and a retirement home on the site, something which was rejected by the Council. He said: “It couldn’t happen so I just have to get on with it now. As a councillor, the worst thing for me is to see so many cars coming over the bridge for jobs, and then taking the money back to Edinburgh or Glasgow. So we must ensure that it will be local jobs for local people. And with the new school, and even better link with the college, we can provide young people with the skills they need.”