The former teachers training college at Nikao will be refurbished to house the Cook Islands Sports and National Olympic Committee (CISNOC).
That is instead of a proposed $1.5 million complex development, for which plans have been drawn.
The Olympic House plans, by architect Romani Katoa, were first unveiled to sports federations and others with potential use of the facility late last year.
Katoa says $250,000 provided for the project by the International Olympic Committee will now be used to refurbish the old college, which enables CISNOC to open it on time for the 25th anniversary of a National Olympic Committee being established in the Cook Islands.
The anniversary falls on March 3 next year.
Tender documents are being finalised at present and Katoa expects the construction to be awarded within weeks.
He says eventually an extensive complex will be built near the college and existing sport facilities at Nikao.
- Rosie Manins