The government has signed a lease to move Samarès Ward to St Ewolds Residential Home.
In February 2024, the Infrastructure Minister told States members the government is proposing to lease part of the building on Trinity Hill.
The relocation of the rehabilitation unit from Overdale will mean demolition work can continue to make way for a new acute hospital.
Constable Andy Jehan says the facilities at the new location are an improvement.
"There are 20 ensuite bedrooms, there are outside exercise areas, it is much better than the Samarès facility, which in turn was much better than the facility at Plémont. I am really thrilled with the solution that has been found.
We have an option for nine years, there's a six year break clause if we need to use that, so we have got some level of surety whilst the other works take place on the hospital estate.
I think it is a good deal for the island and it is a good deal for the parish of St Helier who are the owners of St Ewolds."
Minor work, such as infection control, needs to be completed before the ward can move.
Patients should begin transferring to the new site in the next six to eight weeks.
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