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In a press release, the Queenstown Lakes District Council said the site would "provide a variety of facilities for Lake Hayes/Shotover Country residents as well as the wider community''.
The site, at 516 Frankton-Ladies Mile, is a 14.6-hectare property previously owned by the Walker family.
According to the council's rating information, the land is valued at $3,600,000 and the improvements - including a five-bedroom, 440sq m copper-roofed house, 320sqm of vehicle/aircraft garaging and an in-ground swimming pool - at $2.81m, adding up to a capital value of $6.41m.
In its statement the council said the site had both "strategic and tactical value with an array of uses from recreation and community facilities, to education and transport in an area of significant community growth''.
"QLDC has been regularly exploring land and asset acquisition opportunities that will benefit and respond to existing and future community needs.
"The Ladies Mile property provides a rare opportunity to protect open spaces in the area whilst offering a location for community facilities.''
Mayor Jim Boult said council officers consulted with elected members at the appropriate time and the proposed purchase had been well supported.
"The location provides us with the opportunity to develop much-needed facilities for rapidly growing communities along Ladies Mile, and sites like this do not come up very often.
"Therefore I feel it is a prudent move to make this investment now to enable us to provide for the community in the future.''
Due diligence on the purchase is under way and councillors will fully consider the purchase at an upcoming council meeting.
The council said it was also in discussion with potential partners to explore what facilities could be provided on the site.
Mr Boult said final funding would be determined once the council determined exactly how the site would be used.
"We're in the final stages of due diligence and whilst I can't predict the outcome of my fellow elected members' decision making, I am confident that they will be equally as supportive as I am and will endorse this
The council said it would not comment further until the process was completed.