A development application has been lodged to convert the existing Northam Mitre 10 building to a smaller format Bunnings.
In a statement, Bunnings confirmed that the group had been approached by the property owner to lease the premises and has now entered into an agreement to occupy the site, following the closure of Mitre 10 in January 2020.
Bunnings will lease the property, which will become a new Bunnings smaller format store, that will service the local Northam community.
If approved, the development will inject an investment of over $7 million and employ up to 40 team members, as well as create 500 square metres of additional retail space and additional car parking.
Bunnings regional operations manager Hayley Coulson said Bunnings was looking forward to being part of the Northam community.
"Given the O'Driscoll family's long affiliation with the Northam community, we're glad to be working with them to continue to service the local community with a wide range of outdoor living and home improvement products," she said.
Property owner representative and local pharmacist Daniel O'Driscoll said the family was happy to be leasing the premises to Bunnings.
"We are excited to be working with Bunnings to bring an exciting hardware offering to the Northam community," he said.
"We thank the Northam community for their strong support over the years and appreciate the support of all stakeholders in this important economic development for the region.
If approved, the store is expected to begin trading in the second half of 2020.