A 12 BED facility at Southlands Resource Centre in Port Erin will be reopened for elderly people in the south of the Island.
The Surby Unit was last used in 2009 to accommodate residents from Douglas who were relocated while the Thie Meanagh eldery mentally infirm (EMI) care facility was built.
Since that time the unit at Southlands, which has en-suite toilet facilities, a lounge and a dining room, has been empty.
Social Care Minister Martyn Quayle MHK said: "Since I became Minister for Social Care I have received joint representations from the MHKs for the south of the Island who are keen to see the Surby unit opened to enable older people in the south who require residential care to remain in their local community so they can more readily maintain links with family and friends while receiving the level of care they need."
The Department of Social Care has since conducted a comprehensive review to see if the Surby Unit could be reopened without additional staff or funding and it has been determined that this is now possible.
Mr Quayle continued: "Opening Surby will enable a number of older people who are originally from the south and who are currently in residential care in other parts of the Island to move to Southlands.
"Additionally it will enable a number of older people in the south who have been assessed as requiring residential care to move to Southlands from their homes.
"I believe this will offer care that is more appropriate for the older people affected at no additional cost and so represents good value for money."
The unit is expected to open after April 1 next year to give the department time to discuss the move with service users, staff and unions.
The department has said there are a number of vacancies in residential care and many of the posts can now be filled by people wishing to be employed in the south of the Island.
Additionally some residential care staff who live in the south but work in other areas of the Island will have an opportunity to transfer to Southlands.
In a joint statement released today the MHKs representing the south of the Island - Phil Gawne, Quintin Gill, Juan Watterson, Tony Brown and Graham Gregeen - said: "We have been concerned for some time that some older people in the south who required residential care were having to wait, sometimes long periods, to be admitted to Southlands or were having to choose to leave the area in order to access residential care in others parts of the Island - such that it was less convenient for them to maintain important links with family and friends.
"We have made representations to the minister to ensure he understood these concerns. We are well aware that the department was not in a position to commit additional resources to open Surby.
"We are delighted that the minister has concluded his department can re-deploy resources such that we can make best use of Southlands to meet the community's needs within the department's existing budgets.
"We look forward to the opening of Surby next year."
Southlands Resource Centre provides both permanent and respite residential care for individuals with a wide range of needs.
It also provides a wide range of day care facilities including a day centre and computer drop-in centre run by Age Concern.
In addition Southlands provides a 'hospital to home' service which enables people who are recovering from an injury or operation to stay for up to eight weeks in order to build up skills and confidence so that they are able to return to their own homes and maintain their independence.
