Council meetings are due to be held in St Ringan’s – the current home of the main Shetland Library.
Elected members agreed the former church be “re-purposed” as the council chamber during the full council meeting on Wednesday but only after it went to a vote.
It follows concerns the existing chamber in the town hall was not fit for purpose.
The library, meanwhile, is expected to move back to the nearby old library building.
George Smith backed the motion as it stood but Ian Scott moved an amendment that the two issues of rehousing the library and the council chamber be dealt with separately. The original motion was carreied by 14 votes to five.
During the meeting councillors backed plans to press ahead with the refurbishment of the building, which is badly in need of repair.
An updated business case went before members – but papers warned an extra £722,221 will be required. That is down to an increase in construction costs since the original budget of £900,000 was set for the works.
Councillors had approved the refurbishment of the old library building back in November 2015.
The project was significantly delayed following the evacuation of staff from the North Ness offices into the old library almost a year later.
• More to follow in this week’s newspaper.