The moves will create a much larger QEII Square between the new library-museum and Dean Street and complete the cultural precinct as the “city heart’’.

Registrar of the Wangaratta diocese Dr John Pryor confirmed last night the diocesan trustees, including Bishop David Farrer, had accepted the offer.

“There are just a few minor legal things to finalise but we hope to reach settlement by Christmas,’’ Dr Pryor said.

“The St Matthew’s parish council has been positive about this as the proceeds will allow the parish to do other things and will generate an income.’’

St Matthew’s rector Archdeacon Keith Price must be provided with a new rectory in another part of Albury.

His heritage-listed 1869 rectory will remain church property and will be converted to parish uses, and the war memorial lawn will also be retained by the church.

Albury Council will allow a child-care centre and other tenants to remain pending demolition in late next year.

The square has already been enlarged by the old library’s removal and a new grassed area there will be available for Carols by Candlelight.

Church members have been assured that the cleared parish centre site will not be built upon but will open up views of the church.

A cafe will open at the library-museum when the parish centre goes.

An Anglicare opportunity shop in the centre will close.

Removal of the parish centre was proposed in a master plan five years ago.