This move will allow the health board to develop a health and social care hub in the town.
Plans for the site are still in development, but the new Hub is likely to comprise a GP practice, and midwifery, mental health and learning disability services on the ground floor, and office and administration space on the first and second floors.
Cllr Gwyneth Ellis, lead member for finance, performance and strategic assets at the council, said: “It’s great to be able to keep this building in public ownership and even better that it will bring essential services to a local community.
“As part of the council’s work to identify savings, the decision to close Caledfryn was made in December 2023, and since then, all staff have moved to remaining offices, which has already led to savings for the council.
“I’m very much looking forward to seeing a new future for Caledfryn as a hub for the community in Denbigh and the surrounding areas.”
Cllr Elen Heaton, lead member for health and social care at the council, said: “There are constant increasing demands on health and social care teams and the work that they carry out in the community is invaluable.
“This new hub will be a real asset to Denbigh.”
Gareth Evans, Betsi Cadwaladr University Health Board’s Central integrated health community director, said: “I’m delighted to now be able to reveal this news, which I believe is extremely positive for people living in and around Denbigh.
“Most of our work takes place in the community, so I believe grabbing the opportunity to move from outdated premises to superior accommodation shows our long-term commitment to providing the services people need, closer to where they live.
“The development would mean we can relocate our teams in Trefeirian and Noddfa, which houses Tîm Dyffryn Clwyd, to better, purpose-built accommodation once adaptations have been made.
“We are acutely aware this means Denbigh Men’s Shed will need to find alternative accommodation.
“We have made contact with the organisation ahead of this announcement and pledged any practical assistance we can give as they search for an alternative venue.
“We will keep all colleagues, partners and the public updated on the progress of the development.
“Following ministerial agreement for Welsh Government to fund the purchase and subject to a successful planning application to Denbighshire County Council, the project is expected to be completed in the next financial year.”
The council’s planning authority will be seeking to validate the planning application submitted, and would then undertake a statutory consultation process.