The flagship GP facility is set to be erected in King Street, with Sandwell Council having drawn up a business case alongside the Sandwell and West Birmingham Clinical Commissioning Group (CCG).
Health chiefs have said the redevelopment, which will also include five new council houses, would be a shot-in-the-arm for the area.
Although concerns about congestion were voiced earlier this year, with claims that patients could park in the area if there weren’t any bays available.
Sandwell’s cabinet had been briefed on proposals back in March and were updated this week.
Remediation work on the “derelict” council-owned land is expected to be completed by March next year and construction on-site will get underway soon after.
A report presented by Councillor Danny Millard, cabinet member for inclusive economic growth, said: “The health centre at King Street will replace an outdated clinic at Woods Mesty Croft and a temporary building at Albert Street.
“The central location of King Street will allow better access for visitors to the health care.”
The land was formerly home to the Kingsbury House And Resource Centre, which was pulled down in 2008.
According to papers, the work is expected to take around 42-weeks.