Heathlands care home in Bracknell was closed in 2016 for failing to meet modern standards.
Its redevelopment as a new 66-bed integrated health and care home is being jointly funded by East Berkshire Clinical Commissioning Group (CCG) and Bracknell Forest Council.
Construction work to redevelop the former site, including site set up and demolition, will be undertaken by Stepnell.
Cllr Dale Birch, Bracknell Forest executive member for adult services, health and housing, said: This is an exciting step forward in the Heathlands redevelopment project and the appointing of our construction partners gives us a strong base to confidently move forward with this work.
“Over the coming months, preliminary work will begin to the site, with main construction work anticipated to start this spring and a projected completion date of autumn 2021.”