Douglas post office will relocate to the former Carnival bar in Strand Street.
The move from its Regent Street premises will take place in July.
It was announced at the April Tynwald sitting that plans to move into the Spar store on Strand Street had been put on hold while alternative premises were investigated by new operator Mannin Retail.
Isle of Man Post Office chairman Ray Harmer said: ‘Isle of Man Post Office and Mannin Retail have worked hard to address the feedback it received from customers on the proposed move to the Spar store.
‘We are pleased that Mannin Retail was able to propose an alternative premise which we all believe is a good central location for the new post office.
‘Since the operation of the post office in Douglas transferred to Mannin Retail last September, customer support and feedback has been very positive and we very much hope this continues when the office opens its new doors.’
The post office will feature six counters, two at the front providing quick transactions and the foreign exchange service.
There will also be two Pay & Post kiosks.
A post box will be positioned outside with collections throughout the day from 6am until closing Monday to Saturday.
The opening hours will remain the same, 8.45am to 5.45pm, Monday to Friday, and 9am to 2pm on Saturdays.
A self-service kiosk will also be installed in the Spar store in Strand Street.
And there will be a trial of ‘drop boxes’ positioned by the kiosks in both Strand Street locations for items sent through the Pay & Post machines.
Mr Harmer said: ‘We hope customers will find the new location attractive and there will be easier access with the property being at street level.
‘We understand how busy everyone’s lives can be and so we hope the new layout with the quick tills will give customers a speedy and convenient service whilst receiving the highest levels of customer service throughout.
‘The relocation of Douglas Post Office has been a key project and I am indebted to all the staff and our partner Mannin Retail who have worked on this project which will result in what we anticipate to be a seamless transition for our loyal and valued customers.’
Isle of Man Post Office is looking at redeveloping the Regent Street the site into a large retail area while maintaining the existing façade.
It’s anticipated that an application for planning permission will be ready to be submitted during the summer.