The 70-bed home will be built at the site of the Birmingham Central Synagogue in Pershore Road. The former synagogue building will be demolished and the four-storey care facility built in its place.
The Central Synagogue itself is relocating to renovated premises next-door with funds released from the sale of the old site to Gracewell Healthcare.
Architects Pozzoni have taken Gracewell’s initial design to finalise the scheme.
Completion is scheduled for October 2014.
Seddon pre-construction manager John Gilman said: “This project will create elegant and modern care home accommodation, built to the very exacting standards expected by Gracewell.”