The Museum of Welsh Life has accepted Monmouthshire County Council's offer of the former Raglan railway station.
The building is currently unused and is located in the authority's highways depot on the edge of the village.
The council is keen to present it to the nation and see it gain a new lease of life in one of the world's leading museums.
One of Monmouthshire County Council's deputy leaders, Cllr Bob Greenland, said: "We would like to see the station preserved for future generations.
"We will work closely with St Fagans over a period of several years to make this project a success."
St Fagans is hoping to start moving the station to its new home by the end of the year. The building will be formally handed over to the museum when work starts.
Raglan Station was on the Pontypool to Coleford railway line. The line opened in 1856 and its main job was to carry iron ore from the Forest of Dean to furnaces near Nantyglo.
Although the railway was not primarily for passengers, Raglan was one of a number of passenger stations on the line.
Sadly, the railway became less viable as time went on. It was finally closed in May 1955.