St Modwen has exchanged contracts with NHS East Lancashire for the 1.3-acre former Kwik Save Supermarket on Craddock Street for an undisclosed sum.
NHS East Lancashire said it will apply to Pendle council for planning permission before the end of this year to build a £10m, 5,000 sq ft facility. Building works are expected to start during 2009 and the new facility open by early 2011.
Richard Bakes, development manager, St Modwen said: "Before we started talks with NHS East Lancashire, we had spoken to many different interested parties who wanted to purchase the site. However their proposals did not offer the broader community or regenerative benefits to Colne as a whole.
"This frustrating process has finally come to fruition in the form of the new medical centre, which on completion, will provide a much-needed facility for Colne but also local community and local businesses as it will also help to attract more people into the town centre and should trigger the wider regeneration of the town centre.
"This is excellent news for the town and Pendle Borough Council and we will now work hard, with the Council and NHS, to secure an early planning permission to ensure that we complete the sale to the NHS and ultimately deliver this important facility."