The historic Torri tal-Kaptan (Captain's Tower) in Naxxar is to be transferred to the locality's local council after a deal reached with the Lands Authority.
Lands minister Stefan Zrinzo Azzopardi said the council will renovate the 16th century structure so that it could be enjoyed by Naxxar residents and visitors.
Under the terms of a government scheme, the rent will be capped at an annual €500 instead of the market value of €6,000.
Zrinzo Azzopardi visited the site with the parliamentary secretary for local councils Alison Zerafa Civelli.
The Wirt Naxxari NGO last year appealed for intervention to stop rapid deterioration of the building, with a wall having collapsed after heavy rain.
The tower was among the first fortifications built by the knights beyond the Grand Harbour area during the rule of Grand Master Jean Parisot de Valette.
It was also the house of the captain of the Naxxar militia, hence its name.
The property has a square layout with three floors.
It was used as a hospital during a plague in 1675-1676.