The authority wants to spend £250,000 on the land, as well as adding the Haxby Station project to the capital programme for 2021/22.
The exact location of the 6.8 acre site cannot yet be revealed for commercial reasons. There are two potential locations the council thinks could be suitable for the station.
A report to the council recommended buying the land as it could be used for allotments or woodland if the other site is chosen.
Council leader Keith Aspden said: “The development of a new rail station at Haxby has been an ambition of this administration since day one and that is why I’m particularly pleased to welcome this report and note the progress that has been led by the council.”
Deputy leader Andy D’Agorne said: “I’m aware that there are plans to increase the frequency of trains between Scarborough and York and certainly would hope that this would become part of the offer.
“A half-hourly service would be ideal, helping to reduce the need for residents to drive into the centre of York for onward journeys.”
The Department for Transport has indicated its support for the project and is expected to make a decision within the first half of 2022 on whether to fully fund the station.
Haxby’s station closed in 1930, with numerous attempts made in recent years to re-open a station in the town.
Labour group leader Andy Kilbane said: “Paying three times over the odds for the land is going to be a very expensive gamble if it does end up being allotments or woodland or something like that, however if it turns out to be a train station then it’s a bargain - so it’s a calculated risk worth taking commercially.”