A new doctors surgery will be built in Churchdown after Gloucester City Council agreed to sell the land for the new building.
Land in Parton Road in Churchdown is currently empty and is owned by both Gloucester City Council and Cheltenham Borough Council.
Churchdown Community Association currently lease the site from the councils but have in principle agreed to hand over their lease.
Richard Smith, chairman of Churchdown Community Association, said: “I am delighted that the wheels are in motion to bring a doctor’s surgery to Churchdown.
“It is excellent news as far as we are concerned.”
The issue was due to go to cabinet at Cheltenham Borough Council on June 14 but has been deferred until July 12.
The land, which is more than 1.7 acres, will be given to Brackley Developments who will be in charge of building the new surgery.
Mr Smith added: “A new surgery would be a great relief to a lot of people in Churchdown as the current surgery is overstretched.
“Hopefully this new surgery will help with this situation.”
The community association was first approached with the possibility of handing over their lease five years ago and since then the plans have stalled.
“In principle we have agreed to hand over our lease on the land but that is dependent on plans for the surgery,” said Mr Smith.
“This is certainly good news but there are still a more hurdles to cross.”
The community associations current lease on the land is due to last 125 years but will be disposed of.
If the land is sold, the proceeds would be split between the association and the two councils.
Jennie Dallimore, deputy leader at Gloucester City Council, said: “I know how much this new surgery will mean to the residents of Churchdown, so I’m really pleased that cabinet agreed we should sell the land where the new surgery will be built.
“This new surgery will not just mean people can benefit from a brand new healthcare centre but the money the city council will generate from the sale of the land can be reinvested into front line services.”