Inverclyde Council leader, Councillor Stephen McCabe, says talks to buy the former Co-operative store site in Princes Street are at an 'advanced stage'.
The authority is planning to create additional town centre parking to alleviate congestion for motorists.
Mr McCabe said: "Negotiations are at an advanced stage in acquiring that site from the owners and a deal is close to being concluded.
"Prices have been agreed and the deal just has to go through the legal process.
"The project is going ahead and should start later this year. It is hoped the site will be acquired before the end of March and demolition work can start thereafter."
Mr McCabe also says the recent outcry from local Liberal Democrats in Port Glasgow regarding the location of the town's new park and ride facility is nothing more than a pre-election stunt.
The park and ride is to be built on the former Highholm Primary school site but local Lib Dems suggested Woodhall or Bogston stations would have been a better location.
But Mr McCabe said: "Park and ride is not designed to have a detrimentalimpact on the town centre.
"It's about freeing up the limited parking available, which is currently taken up by commuters, and allowing shoppers to come in and spend a bit of money in the town.
"It may also have a spin-off that people will spend in shops at the start and end of the day."