The police station will relocate from New Street into Dudley Council offices in St James Road.
It brings to fruition cost-cutting plans by West Midlands Police to close and sell-off the current station, which closed its front desk last year.
In total, 13 police stations in the Black Country have closed or are to close as part of the move, which will save the force £8.6 million.
Stations have already closed in Kingswinford and Stourbridge, both in August. The buildings, in Moss Grove and New Road, are up for sale.
Once the police team has moved out of the Dudley station, it will also be put up for sale, confirmed the West Midlands Police and Crime Commissioner David Jamieson.
He said: "I am pleased that we are retaining a base in Dudley town centre.
"By moving in with the council this will enable closer working on important issues to keep the people of Dudley safe."
The move has been welcomed by Dudley Council leader, Councillor Patrick Harley.
He said: “Police are leasing part of our building in St James’s Road from early December, which is a fantastic way to use some of our surplus space by bringing in partners.
"We are just finalising the details of that lease but look forward to collaborating with West Midlands Police and welcoming them to our building.”
All officers currently stationed in the New Street police station, built in 1939, will relocate to the council office, which is opposite Dudley Town Hall.
The front desk at the station was closed last year despite a 2,000-signature petition to keep it open. Dudley Nroth MP Ian Austin presented the petition to Parliament.
At the time, he said: “It would be completely unacceptable for the police not to have officers based in the town and available for local people."