The new Nakasi market will be built behind RB Patel South Point Supermarket.
This comes after vendors who used to sell their produce on the roadside were told to relocate to other markets by the government.
Their relocation has caused a public outcry with some vendors tried to make a protest against the removal of roadside stalls by the Nausori Town Council.
Minister for Local Government Premila Kumar while speaking in parliament said the piece of land was approximately two acres and is ideally situated.
Kumar said it was significant to note that the location of the new market will complement the commercial development around the area.