Feasibility work for the second phase will begin this summer.
No final decision has been made on the exact services, but council officers said the building could be adapted to support a mix of health and wellbeing care, according to the Local Democracy Reporting Service.
Williams said: “Rotherham town centre is currently limited in its provision of health services, and it would benefit from utilising this vacant building.”
“Something like a health hub, depending on the services we get pulled into there, could really make a big contribution to wider health services,” he added.