Sandwell Primary Care Trust considered a report last Thursday looking at whether the Tanhouse Community Centre could be used to provide GP services in the area.
The board decided that a refurbished facility at the Hamstead Road centre would be more economic in terms of time and cost than redeveloping existing facilities used by Dr Chitre in Tanhouse Avenue.
As the Tanhouse Centre is owned by Sandwell Council the trust's decision must now go before the council's cabinet ahead of any building works.
If the council approves the plan it is hoped that two GPs surgeries could operate from the Hamstead Road site by the end of the year.
Bob Tidmarsh, pictured above, spokesman for the Tanhouse Action Group said he was pleased the new GP facilities appeared to be a step closer after a two-year campaign for better facilities in Hamstead.
But he warned pressure needed to be maintained until the surgeries were a reality.
"I am very relieved and happy but just a little bit cautious," Mr Tidmarsh said.
"The fight isn't over yet as it is a council-owned building and it will require refurbishment. We need to keep pressure on the council."
The Feasibility Assessment into new facilities at the Tanhouse Centre stated Dr Chitre's existing facilities were in a poor state of repair.
It said both Dr Chitre, a GP contracted to the Heart of Birmingham PCT, and the Great Barr Group Practice were keen to provide services at the new venue.
Once in place the GP facilities could maximise use of the community centre and may also attract other services to the site.
The proposal is for Sandwell Council to refurbish the centre for use by the practices then lease it to the Sandwell trust.
Jon Dicken, deputy director of commissioning at Sandwell Primary Care Trust, said: "Last week the PCT board considered a feasibility study for the refurbishment of a part of Tanhouse Community Centre, Great Barr, for the use of health facilities.
"The board approved the recommendations from the feasibility study, which will now go through Sandwell Council's cabinet process for approval before any decision is made on carrying out building works."