The borough council and Magna Housing have agreed to work together to redevelop the site.
This means the old office building will be demolished to make way for affordable homes, homes for older people and parking.
Jeff Cant, Leader of Weymouth & Portland Borough Council and Briefholder for Finance & Assets, said:
“I am delighted to confirm that the borough council has decided to work with Magna Housing to secure the redevelopment of North Quay.
“The borough council is keen to ensure the redevelopment of the site provides parking as well as residential units.
“We have looked at a range of options, but believe progressing the development with Magna gives us the best opportunity to leave a legacy that will be of real benefit to the borough.
“It will also help the council to secure additional grant funding from central government to cover some of the costs associated with the development.
“Details of the scheme are yet to be worked up and there will be public consultation as part of the detail planning process.”
Cllr Gill Taylor, Weymouth and Portland Borough Council Briefholder for Housing said:
“This is fantastic news for Weymouth and I think the best possible way the site could be developed.
“We are in need of more homes for our residents to live in, this is why we launched our Opening Doors Programme.
“As part of this programme, we have started a Home Ownership Register to learn more about housing demand and find out the size and locations of homes that people want. As part of this we also forward on details of upcoming developments and opportunities to own a home.
“I would recommend anyone looking to own their own home to sign up to the register.”
David Aldwinckle, Property Director at Magna Housing, said:
“Magna is pleased to have the opportunity to develop on this important site to provide new, affordable homes for the local community.”
Next steps for North Quay redevelopment
Officers will now start work to prepare a planning application to demolish the offices at North Quay.
The council is applying for grant funding from Homes England to help fund the costs of preparing the site for redevelopment.