MEADOW View Residential Home will be demolished and rebuilt next summer after planning chiefs made a U-turn.
Committee members went against recommendations to refuse the application made by Warwickshire Care Services.
Alcester Town Council previously supported the proposal but specified the new building should not be occupied until a problem involving the improvement of access to the site was overcome.
But councillors expressed fears that the town may lose Meadow View if the plans were not pushed forward fairly quickly and asked mayor Eric Payne to speak at Thursday's Arden area planning committee meeting.
He said: "We feel the retention of Meadow View in the town is essential and quite exceptional efforts should be made to assist the applicant in its intention to rebuild.
"WCS should be able to proceed with its plans using the present access from Fields Park Drive with certain conditions, which would ensure that within a specified period the access would be improved to specifications required by the planning authority, a period of five years."
Mr Payne said the council changed its representation because it believed it was unfair to propose Meadow View should not be occupied until access was improved, a condition that was lifted.
"We were concerned we would lose Meadow View because the time limit for it to be rebuilt has passed and wanted it to be moved on from the planning stage as soon as possible.
"It is an excellent result for the scheme and we hope to see an up-to-date, modern, 60-bed home in the future," added Mr Payne.
Rory Duff, chief executive of Warwickshire Care Services, said: "We were under obligation to replace Meadow View and should have done so by 1997, but we received sanction to extend that deadline.
"However, although Meadow View will see it through this winter, I doubt it would see it through the next so something had to be done. We are now planning for work to start in the middle of next summer.
"We also have unfettered access to the site since the planning condition was moved entirely.
"I very much appreciate the support of the town council and Alcester community in helping to make this progress and am delighted at the result."
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