Knighton Post Office will move from Stars Newsagents on Broad Street to Harry Tuffins Supermarket, 300 yards away, the Journal can reveal.
The date of the branch relocation will be confirmed in due course.
Post Office Ltd announced the controversial move this week and informed Knighton Town Council of their decision to relocate at a meeting on Wednesday.
They claim the relocated premises will be able to offer an enhanced service to the local community in Knighton, including a new, modern, purpose-built serving counter, a flat level entrance for ease of access and easy manoeuvrability within the branch; improved car parking facilities, with on site multi-storey parking, with four designated disability spaces and a vibrant retail establishment, offering facilities, including a supermarket, butcher, housewares, petrol filling station and off-license.
A spokesman for Post Office Ltd said: “We have considered all of the responses received through the consultation period and we have decided that the relocation will proceed.
“We are confident that the new branch is suitably located and can meet the needs of customers, with a wide range of services, opening hours, transport, route and accessibility.”
Knighton Town Council made no comment at its meeting on Wednesday.
Plans to move the post office prompted a 582 signature petition from residents in the town and a public meeting in June was packed.
Residents were told then that Post Office Ltd had received the resignation of the current postmaster and Roy Delves of Harry Tuffins had applied for the position.
Mr Delves told the meeting that he was the current sub postmaster at Churchstoke, where Tuffins has built a post office.
Some people said the Tuffins site would be dangerous because of the movement of traffic around it, but Tuffins manager Neil Eldridge said the company does all it can to ensure the safety of its customers.
He said there had been no other tenders for the post office and they thought they needed to keep the post office in the town.