South Wairarapa Mayor Adrienne Staples said when she heard the existing bottle store would not be needed, she approached Trust House about donating it.
"We were delighted with their response and excited that the men's shed will bring a hive of activity and community fellowship to such a high-profile location."
Mrs Staples said the council would be consulting with the Featherston community next month on the initial concept to move the building close to the skatepark on the vacant land and alongside what could be a new landscaped paved area.
Featherston Menz Shed chairman, John Renor, said the building would be a great boost to the town.
"Many retired men don't have a workshop - this is a place where blokes can be blokes, get together and contribute to community projects, do their own thing or just call in for a coffee.
"It will be hugely beneficial for people in Featherston and the surrounding areas."
Mr Renor said the group already had a couple of projects lined up.
"We have a long list of ideas and activities ... including health talks, working bees and community projects.
"We would also like to mentor some of the young people in town and stimulate their interest in learning new skills."
While the name of the group sounds exclusive, women are just as welcome to come along and get involved.
The group formed late last year and is working out of temporary premises.
It is similar to one established at Henley Lake, Masterton, and aims to brings men together in one place to share skills, have a laugh, and work on practical tasks individually or as a group.
"I was part of the Henley Men's Shed for a while which made me really keen to establish one here," said Mr Renor.
A new adjoining bottle store with a separate entrance at the new supermarket's northern end will be built.
The new supermarket could keep its Four-Square brand or become a New World or Pak'nSave.
