Woodside Petroleum has struck a deal with the owners of the old Emu Brewery site at the western end of St George's Terrace for its new headquarters.
In a move flagged by WestBusiness last month, the company has signed a memorandum of understanding with Malaysian property developers AAIG to build a $1 billion complex at the corner of Spring and Mount streets, to be named Capital Square.
Woodside is expected to move into a 31-level office block on the site, occupying 55,000sqm of space.
The company's staff are expected to begin moving into the new building in 2018, a year before Woodside's existing lease at Woodside Plaza expires.
AAIG bought the 1.8ha property in 2010.
The company already has development approval for an office, hotel and apartment development at the long-vacant site and work has already begun on the residential component.
The Emu Brewery, WA's first commercial brewery, was shifted to Canning Vale in the late 1970s and the art deco building was demolished in 1992.
Since then, numerous plans have been mooted for the site but none have materialised and the large vacant block has degenerated into an eyesore.
Woodside shares were up 23 cents to $41.62 at 8.05am.