The Eastwood Community, Employment, Dementia Awareness, Resources and Services (CEDARS) hub with be located on Nottingham Road.
The hub will be the one-stop point Department for Work and Pensions, Job Centre Plus, the Connect to Work programme and access to health care, council employees and other public and voluntary service partners.
It is also planned to offer support packages for those caring for people with dementia.
It will be designed to offer a location for nearby residents to have access to health and social support without the need to travel further away.
The project has long been an aim for council leader Coun Milan Radulovic (Ind), who represents Eastwood Hill Top on the authority.
Earlier this month,the council's plans were turned down for funding from the new East Midlands Combined County Authority.
But Coun Radulovic, who has been recovering from surgery at the start of the month, has seen the disappointment of that eased by the news the council cabinet had given plans for the authority to instead fund the project itself, the green light.
He said: "The council is funding it iself as part of the budget proposals and we're just finishing off the legal terms and paperwork and then we can start adapting a shop in Eastwood where it will be located.
"It will bring much-needed extra footfall to the town centre and it will be a multi-functional faciltity and make a big contribution in helping people back to work.
"I'm absolutely delighted to see this going ahead because its ridiculous that people around Eastwood trying to get back into work have to go to places like Ilkeston or Alfreton for help and support.
"So we're concentrating on this hub in Eastwood and we're just concentrating now on the legals, sorrting out the lease and the final details and then we hope was start work pretty soon in the next few weeks of upgrading the shop premises and turning it into the hub which will be a great addition to Eastwood town centre."