There had been disagreements over where the building should go.
A site for a new primary care centre in Birr has been confirmed by the HSE.
There were fears the plans had been abandoned, having faced repeated delays over the last number of years, along with disputes over where it should be built.
The Health Service has now selected a site near the County Arms Hotel, which is already zoned for development under the County Development Plan.
The project will go to the planning stage next.
Cathaoirleach of Offaly County Council, John Carroll says they can't afford any more delays:
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