The old Woolworths building in Bargoed is to be re-opened by The Original Factory Shop.
The national retailer has signed a lease for the building which is currently being re-fitted.
Cllr Ron Davies, cabinet member for regeneration welcomed the news. He said: “Bargoed town centre is experiencing a major transformation thanks to the range of regeneration projects underway at the moment. The decision by the Original Factory Shop to invest in the town is fantastic news and demonstrates a new found confidence in Bargoed.
“The building enjoys a key location within the town centre and will also benefit from the new bus station development and the new pedestrian link being created in close proximity to the site.
“I’m sure traders and residents will join us in welcoming this new addition to the town centre and we look forward to the store opening in the coming weeks.”
The premises, which boasts the largest retail floor space in the town, was purchased by the council using Heads of the Valleys funding from the Welsh Assembly Government. It had been earmarked to be turned into new office space prior to the deal with the Original Factory Shop.