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Sheffield's only hospice will relocate to a new, more modern facility after it agreed with the city council on a site for the project.
St Luke's met with public opposition when it said it wanted to relocate to a site in a corner of Graves Park.
And when Paul Scriven took over as council leader in May he rejected the plan, saying parks should be protected.
After negotiations both parties have agreed to build the hospice on the site of the former Bluestones Infant School.
'Excellent work'
Mr Scriven said: "I am personally pleased that a solution has been found, and this can only be to the benefit of all the people of Sheffield.
"Now is the time for the whole of the city to get behind St Luke's and support them as they continue their excellent work."
St Luke's is the only hospice in Sheffield and opened in 1971. It is currently based in Whirlow Lane, Whirlow, but believes the location is no longer suitable.
It wants to build a more modern facility where it can provide more spacious rooms with en-suite bathrooms and other amenities.
Andrew Coombe, chairman of the hospice's board of trustees, said they were also pleased with the outcome.
"This will enable St Luke's and the city to direct their combined energies towards the urgent task of creating a national centre of excellence for end of life care."
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