A campaign is being launched to refurbish the premises
A project to create a museum about stories in Oxford has been made a reality after a £2.5m anonymous donation.
The Story Museum promises people the opportunity to experience tales in a variety of ways.
Organisers have signed a lease for a building on Pembroke Street, but need to raise a further £11m for refurbishment.
The museum is due to open in 2014, attracting 100,000 visitors per year.
The project is the brainchild of director Kim Pickin, who came up with the concept about 10 years ago.
She said: "I think people really like the idea, it's something different and new and they can see how it's benefiting children."
The Story Museum has existed as a virtual project since 2003, with story-telling sessions being held within the local community.
An anonymous benefactor came forward with £2.5m, enabling the museum to buy a building on Pembroke Street called Rochester House.
Ms Pickin added: "We had quite a clear idea of what we were after and this was in the right place and the sizes of the rooms and spaces are ideal for what we want."
A major publicity campaign will be launched next year to continue raising the £11m needed to transform the building.
Once the museum is open, people will be able listen to stories and see pictures and objects about the tales.
Oxford children's author and patron Philip Pullman said: "The Story Museum will be a wonderful gift from Oxford, where so many stories have begun, to the whole world."
The team hopes the project will be complete to coincide with Oxford's bid to become Unesco's World Book Capital in 2014.