The site, which is located at the south end of the town centre, will serve as the location for the Council's new main offices.
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The next phase of the project will involve the development of the proposals to achieve a preferred option with both local key stakeholders and staff.
Commenting on the announcement, Councillor Thomas MacLennan said: "This is a win:win situation for Fort William.
"We save the Council Tax payer money by delivering our Services more cost-effectively and efficiently and we regenerate a building near to the centre of the town which has lain empty in a derelict state for 25 years."
A target of completing the project by 2016 has been set.
(JP/CD)
