The television factory in Oulton Broad closed in 2009 and was put up for sale for between Â£3.5m and Â£5m.
Waveney District Council said it was in "advanced negotiations" with Sanyo, but would not reveal the current price.
The council said it planned to use the land for a mixture of 350 private homes and social housing.
The 20-acre (8-hectare) Sanyo site on School Road employed 800 people at its peak.
The council said the land had been earmarked for housing.
The sale price had been agreed with Sanyo and purchase was proceeding.
Colin Law, Conservative leader of the council, said: "The acquisition of this land will help the council better deliver a mixture of housing which will help those who wish to enter the housing market for the first time and who would otherwise be unable to do so.
"This purchase and future development will support the considerable business and industrial development generated around this location by the offshore and renewable energy sector."
The council said the funds would come from its housing revenue budget and it would not have to borrow money.
A price for the former Sanyo site in Lowestoft has been agreed with the local council, which wants to use it for housing.