The Ballyduff Primary School site will be transformed into social housing, following initially conflicting statements by two government departments.
The Department of Social Development first claimed the land on the Knockview Road, for a proposed housing development.
But DSD Minister Margaret Ritchie's pledge was last month contradicted by Education Minister Caitriona Ruane, who said her department would be putting the land up for sale on the open market.
Local representatives expressed confusion at the lack of clarity emitted by the two departments.
But after probing, it now appears the Stormont ministers are committed to a shared objective.
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The planned social housing project will go ahead.
A DSD spokesperson said: "When this site was first declared as surplus by Land and Property Services, the Northern Ireland Housing Executive immediately registered their interest in acquiring the site.
"Negotiations to finalise the purchase of the site are at an advanced stage and Oaklee Housing Association has been appointed to develop the site once formal acquisition has taken place.
"The purchase of this site will allow for a much needed housing solution to be found for those in housing need in that community," added the spokesperson.
Education Minister Ruane is now said to be "reviewing" her earlier statement, however there has so far been no further comment from Ms Ruane's department.
It has been reported Oaklee Housing Association has scheduled the construction of 20 new homes to begin in 2009 or 2010.
Newtownabbey Councillor John Scott, who slammed the two government departments for their initial perplexing comments, has welcomed the latest announcement.
Councillor Scott said: "It's very good news, especially for the many local people needing somewhere to live because the housing shortage in this area is unbelievable.
"It'll be great for the area - for the Ballyduff area in particular and people across Newtownabbey in general.
"We were previously told that building could start in 2009 or 2010, but the sooner work starts the better," he said.
The school, which closed last year because of falling pupil numbers, was demolished by contractors last month.
(PR/JM)
