Dawley Post Office will now be based at Lifestyle Express on High Street.
The post office had been based at the Co-op on High Street, but its future was put in doubt when the firm announced it was leaving the premises.
Long-standing Dawley businessman Gurjinder Singh will become the postmaster at the post office, which will be housed in part of his Lifestyle Express convenience store.
Telford & Wrekin Council said it has worked with Great Dawley Town Council and local councillors to secure a permanent home for the post office.
The authority said it will support Mr Singh with the fit-out of the new post office at his store, and added that details of the opening will be announced in due course.
Mr Singh said: “I’m thrilled that a deal has been agreed and I’m looking forward to running the post office which will be housed within my store.
“I think this is really positive news for Dawley and hopefully it will give residents the services they need and reassurance that a post office is coming back to the town.”
In October, Telford & Wrekin Council agreed a deal to bring Tesco Express to Dawley High Street, in part of the former Co-op.
The new store is set to open in Spring 2023.
In a statement, Telford & Wrekin councillors Shaun Davies, Bob Wennington, Andy Burford, Ian Preece, Lord Kuldip Sahota and Raj Mehta said: “We are delighted with the appointment of a new postmaster and a new permanent home for Dawley Post Office.
“Gurjinder has been based in Dawley for 10 years and he is well known in the local community.
“This announcement is great news for everyone in Dawley and means the continuation of an extremely valuable service that the post office has provided to residents for generations.
“We will continue to work with existing businesses in the town to support and promote them and attract new businesses.”