Nassau's Straw Market will remain on Bay Street in the downtown area near the cruise ship dock, according to Bahamas Prime Minister Hubert Ingraham.
The original Straw Market burned to the ground in 2001; since then, vendors have operated under a large, makeshift tent near the Pompey Museum on Bay Street.
Rumors that the market would be moved from downtown have circulated for years.
The former administration had proposed a large complex for the displaced vendors that also would have included restaurants, clubs and retail shops. That plan was shelved when a new party came into power at the end of 2007.
Ingraham's plan is to build a market specifically to accommodate the needs of the vendors, according to published reports. Until the Straw Market is rebuilt on its previous site, the goverment will upgrade and repair the tent now used by the vendors.