A charity for Isle of Wight adults with disabilities plans to open a care facility on the site of the former Barton Primary School.
The school, in Green Street, Newport, closed in 2016 and pupils relocated to the Downside Middle School site.
The Phoenix Project, a charity which provides day care services for adults with learning difficulties and autism, is planning to buy some of the site from the IW Council to expand its services.
The charity, which supports 90 people from its base in Haylands, Ryde, plans to provide workshop spaces to develop employment skills, a training kitchen, therapy rooms, a dance and performance space, and offer art classes.
The council has decided to keep the Early Years Centre on the site to help it cater for the growing number of high-needs families moving to the Island.
Cllr Geoff Lumley said he had supported the plans since discussions began. He said: "It has my wholehearted support and my community’s support. I think the charitable trust can add some real value to adult social care."
Bob Marks, chairman of the Phoenix Project trustees, said: "It is ideal for our needs, offering opportunities for all kinds of activities. We also hope it will be a resource for the community to use.
"We are very pleased at the executive’s decision and hope we will be able to move quickly from our premises in Ryde.
"We would like to thank Cllr Lumley for the support he has given us."