St Catherine's Hospice has announced plans to move to new purpose-built premises at High Farm, Throxenby, on the outskirts of Scarborough.
The hospice trustees' offer has been accepted and now a big public appeal will be launched, said Bob Clarke, the chief executive.
The board plans to build a new £3.4 million complex on a four-and-a-half acre site and to sell its existing premises in Scalby Road which were opened in 1985 by Princess Margaret.
Planning permission is shortly to be sought for the scheme from Scarborough Council. "We have been expanding our services and we have now run out of space," said Mr Clarke.
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