The chosen site, off Edge End Avenue and Halifax Road Nelson, would increase the number of burial spaces across Pendle from around 1,120 to 8,520.
Coun. Nadeem Ahmed, leader of Pendle Borough Council, said: “We have been looking for a large site for some time which would be suitable for a dignified burial space in an attractive green environment.
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“The council has reached provisional agreement with Lancashire County Council to buy this site to ensure there is sufficient burial space in Pendle to meet future needs.”
The purchase price is £840,000, with additional costs for niche walls for ashes, a road, paths and car parking.
Coun. Ahmed added: “The council is preparing a detailed plan and funeral directors and other interested people will be consulted.
“Local people will have the chance to have their say, as part of the planning process.”