The acquisition from supermarket company Morrisons provides fresh hope that the former Western-style theme park could finally be redeveloped after closing more than 20 years ago.
Lancaster City Council has bought the Morecambe site for an undisclosed sum in a bid to kick start a project to revamp the 7.6-acre plot, located off Marine Road West.
Frontierland, which closed in 1999, has been the subject of several failed redevelopment attempts.
Most recently, developer Opus North won approval for a £17m mixed-use scheme known as Bay Shopping Park in 2014.
The proposals included 120,000 sq ft of retail space, 15,000 sq ft of restaurants, pubs and cafes, a 62-bedroom hotel and 336 car parking spaces.
However, the project never materialised and planning consent has now expired.
“By owning the land, we now have the potential to use the site to help drive the reinvention of the town,” said Cllr Tricia Heath, Lancaster City Council’s cabinet member with responsibility for economic recovery.
“There are a number of options available that provide the opportunity to capitalise on the renewed interest that developers are showing in Morecambe.
“Frontierland has been left to decay for long enough already, so the council felt it had to step in and pursue its own redevelopment plans to provide long lasting economic, social, and environmental improvements.”