Fife Council has agreed to sell council owned land to Tayport Community Trust in an effort to 'breath new life' into the town.
The 1.2 hectare site is located at the former Abertay Works on Shanwell Road.
It is hoped a range of facilities will be built on the site including a cafe, soft play area, a new sports hub, space for arts and crafts, a camping and tourism site and a business venue.
The council bought the site and building formerly occupied by TF Fabrication in 2001.
Despite various proposals being considered, no viable scheme for redevelopment had been taken forward.
However, proposals by Tayport Community Trust to create a community hub has prompted the council's decision to sell the land.
Councillor David Ross said: "The Trust have some very exciting and viable proposals for this site which will help improve the quality of life for people in Tayport and bring some very welcome facilities to the town."
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