The NHS staff will move to the recently opened hospital in Kirkwall, leaving the space for VAO and a number of third sector organisations at the Garden House site.
Orkney Islands Council Depute Leader, Leslie Manson, said: "The voluntary sector plays a vital role in maintaining a strong and caring community in Orkney and it has long been our ambition to provide modern, fit-for-purpose accommodation that will support the work of VAO."
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The plan to refurbish Garden House for VAO proves a cost effective alternative to the original plan to extend Kirkwall Travel Centre.
Gail Anderson, Chief Executive of VAO, said: "Garden House will provide an excellent base for VAO and for the third sector partner organisations that share our current offices in Bridge Street.
"It will be an exciting new chapter for us all and we are grateful for the Council's support. We are looking forward to moving to our new home once the refurbishment work has been carried out."
The new hospital and healthcare facility is due to open in 2019.
(CM/LM)
