Kapuskasing council has decided to support North Centennial Manor's project after meeting with the North Centennial Manor board last week.
A brand new $9-million facility will be built and will consist of 71 beds, which will be stipulated by the Ministry of Health and Long-Term Care.
The board will consult the municipality, Spruce Falls and Sensebrenner Hospital before consulting the public.
Council has decided to provide funding of $1 million over the next six years. Half of the amount was committed earlier in the fiscal year; the remainder will come from this year's budget surplus.