Commercial property specialist Danny Harris, from Harris and Wood Real Estate, said he had negotiated the lease on the yet-to-be constructed purpose-built property.

"I think it will be a welcome addition to replace what has been an ugly section of the highway for incoming traffic to Warrnambool's central business district," Mr Harris said.

He said a planning permit for the project had been submitted to the Warrnambool City Council and was awaiting approval.

Designers by Nature director Dean Picken has drawn up the plans for the new medical centre.

"It will be nine consulting suites and it will also have 27 car spaces onsite," he said.

"It's a modern insertion onto the site. It will be single-storey, set back from the street."

The Standard reported in August last year a Warrnambool man had bought the former Caltex service station site at 435 Raglan Parade for more than $500,000.

Mr Harris said the undisclosed actual price for the 2211-square metre site was a pleasing result.

The site, which has been unoccupied since February 2009, had been decommissioned over the past 12 months, Mr Harris said.

"After multiple offers from buyers, both local and from Melbourne, the site sold within 30 days," he said.

The redevelopment comes as another Caltex site, on the corner of Raglan Parade and Kepler Street, has been decommissioned and will be demolished in preparation for a sale.

A Caltex spokesman said the site would be sold by expressions of interest.

Warrnambool resident Alan Tampion worked at the store in the late 1960s and '70s when it was a Mobil service station known by locals as "Surf City".

He said the site was formerly grain seller McMeekin Produce Merchants and then a taxi depot.

It then became a Mobil service station before changing to Caltex.