The council’s ruling cabinet backed a plan to purchase the site last week.
A report outlines plans for the land to be sold on to the South Yorkshire Passenger Transport Executive (SYPTE), to develop a park and ride facility.
The purchase was supported with Section 106 funds secured with from the developers of a 400-home estate at Wellhouse Lane, for loss of local amenity.
Coun Hannah Kitching, Liberal Democrat councillor for Penistone West welcomed the plans, adding that the Sheffield to Huddersfield railway line is “under utilised”.
Coun Kitching added that “various councillors over the years” had their eye on the land as a solution to parking problems at the train station.
“We know that a lot of people in the community will have a lot of views on this, and how it’s going to affect both how people use the rail network and also potentially, how people access town.
“It is a really important part of our principal town plan, and there’s a lot more consultation and planning to be done. I’m really looking forward to seeing the plan, and being able to consult with residents on them.
“[The land] is being used to develop infrastructure, and that is what the town needs.”
Tim Taylor, SYPTE’s director of customer services said: “We’ve prioritised improving park and ride facilities in Penistone and are seeking funding to develop proposals for the land at Laird’s Way, in discussion with Network Rail.
“The current parking allocation for the station is not enough and we’re seeking a long-term solution, alongside our plans to improve services on that line.”