The supermarket giant has bought the derelict Ravenscourt shopping precinct in Brownhills and plans to open a new store there next year.
The move, which is subject to planning permission being granted by Walsall Council, will see the closure of the current Aldi around the corner on High Street.
It brings to an end years of wrangling over the site, which became a magnet for fly-tipping and anti-social behaviour since its closure.
It is understood that Aldi will submit a planning application before Christmas for the store, which which will be more than 50 per cent bigger than the current High Street site.
The number of car parking spaces will increase from 57 to 100.
Robin Williams, Aldi’s regional property director, said: We are thrilled to be bringing forward our plans for relocating the Brownhills store.
"Our proposals to relocate the store will ensure we can continue providing jobs and investment into the local economy, whilst offering our range of award-winning products to our customers.
"By relocating so close, we can continue to serve our dedicated customer base, but ensure the long-term future of the store and preserve our commitment to Brownhills."
Councillor Adrian Andrew, Walsall Council's deputy leader and regeneration chief, said: "Our administration has pledged to sort out the problem of the derelict Ravenscourt on behalf of the people of Brownhills and by working with the previous owners for many years and more recently Aldi we have had a fantastic outcome.
"There will of course be a planning application and process that will follow, with the decision made by the planning committee but the purchase of Ravenscourt by Aldi is a game changer for Brownhills, and we thank Aldi for working with us and investing in Brownhills."
Ravenscourt has been described as a "blight on the community" having been derelict for years. It has endured a number of false dawns, including when Tesco pulled out of a deal to open a store there in 2014.
Plans for a two-storey building with two retail units and a gym were unveiled in 2018 but never came to fruition.
Aldi is set to open a number of new stores across the West Midlands as part of a major expansion drive.