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Regeneration Minister Margaret Ritchie made a pledge to transform the town centre area on a visit in 2007.
The site has blighted the town for almost 30 years.
Plans have been put forward for a new mixed tenure housing development and a number of small offices and retail units.
Ms Ritchie said: "I have been closely involved in the progress being made on the Curran Street site over the last 18 months. I can confirm that, as promised, the site has been acquired by my department. Already, I have appointed contractors who have cleared and fenced the site providing a visible improvement.
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"I am determined to transform this site as part of my commitment to revitalising Portadown."
The Department for Social Development has been working with the local North West Portadown Neighbourhood Renewal Partnership, Portadown 2000, Craigavon Borough Council and other government bodies to assess how the site can be regenerated.
"We have agreed that, in the current economic climate, the best way to secure the regeneration of the site is to work up our proposals and obtain full planning permission. I have, therefore, approved the appointment of consultants to assist with this process," added Ms Ritchie.
Craigavon Mayor Sydney Anderson welcomed the progress.
"The Advisory Group has got quite a challenge in that it’s vital that the site is developed robustly and yet with sensitivity. I wish them and the consultants every success and look forward to seeing the proposals," said the Mayor.
The site has been derelict for many years and has been identified as part of a potential development site in the Craigavon Area Plan 2010.
An Advisory Group has been established to work with the appointed consultants to ensure the site is developed in a controlled and acceptable way.
(PR/JM)
