Ashgate Road car park will close later this month after the site was sold for development.
The car park will shut at 7pm on Wednesday, July 25.
Chesterfield Borough Council agreed to sell the 1.5-acre site, which has been earmarked for housing development since the mid-1990s and been on the market since 2015.
The proposal is for the buildings at 6 Ashgate Road to be converted to a care home and for homes to be built on the site of the car park.
The contracts are due to be exchanged in the next few weeks.
The development will require planning permission and the plans will be published in due course.
Councillor Terry Gilby, the council's cabinet member for economic growth, said: "As a borough we are required to build an extra 4,591 homes by 2033.
"The land at Ashgate Road has been identified for new housing and was only ever intended to be used as a car park on an interim basis until the land was sold for development.
"We have a range of parking options and parking savers available for commuters who work in the town centre."
For more information on alternative parking, visit www.chesterfield.gov.uk/parking