The church building, believed to date from 1939, has been purchased by the Te Anau Lodge, and is expected to be moved from its current location later this month.
Church elder Pam Hunter said the decision to sell the old church building was a difficult one and was based on practical need.
"It's taken a long time to make this decision. It's something that's been talked about for over 20 years.
"There were mixed feelings, as there is when you make changes of any kind, but we've outgrown the church."
The 25-strong congregation now meets in two places, Clydevale and Tuapeka Mouth.
"It's become impractical to keep two churches running."
Mrs Hunter said while the church was a beautiful old building, it was cold in winter and did not have kitchen facilities to cope with the community groups who used it.
"We run Mainly Music. It's a music programme for preschool children," she said.
The programme caters to 25 children and is run on Wednesday mornings from the Clydevale Post Office.
"The new building is being built by Big River Homes.
"I don't know the exact dimensions, but it will be simple and tasteful."
Mrs Hunter said the plans had been developed, and while she was not sure exactly when the building would be finished, it should be on-site sometime in the middle of this year.
