Yarra City Council has invested in a 290m2 parcel of land on Wellington Street, Collingwood, that it will preserve as open space for the suburb.
The land, on the corner of Wellington and Mater Street is currently vacant and was purchased for $1.5m from the Salvation Army.
Yarra City Council Mayor, Cr Stephen Jolly, said with a rapidly growing population, it was important to invest in open public space.
"Open green space such as this is important in densely populated suburbs such as Collingwood," he said.
"This acquisition will add valuable green space for the local community to enjoy now and into the future."
The purchase is being made under Council's powers in section 112 of the Local Government Act 2020 and will be finalised once the subdivision process is complete.
Council will soon undertake community engagement on the future use of the site.
