The Wurlitzer – almost identical to the Blackpool Tower ballroom organ – is to be installed in the Victoria Hall, Saltaire, Bradford.
It was removed from the Ritz, Brighouse, in January 2007 because of uncertainty about the long-term future of the dance hall.
The Cinema Organ Society brought the Wurlitzer to the Ritz in 1995. It was used for concerts, practice sessions and dances.
The society spent months looking for a new home before finally settling on the Victoria Hall. With help from the charity, the Salt Foundation, it is hoped it will bring people to the village.
Foundation chairwoman Geraldine Whelan said: "The organ will be a world-class addition to the attractions in Saltaire, and will almost certainly be the centrepiece of international conventions.
"Such an attraction will bring visitors to the area."
Godfrey Nield, chairman of the northern district of the Cinema Organ Society, said he was delighted. "Although 70 years old, this fabulous instrument is in very good condition and will be a perfect addition to Victoria Hall.
"It would cost millions of pounds to build at current day prices. The sound quality of this organ is more than exceptional."
Society member Kenneth Gledhill, of Norton Street, Elland, said it was sad that its new home was out of Calderdale.
"Looking at the broader picture I think Calderdale has come out of this badly," he said.
"It has lost something unique."
It took a team three days to dismantle the Wurlit-zer at the Ritz and the project to install it in its new home is now under way.
The Wurlitzer was last heard at the Ritz in December 2006 when it was played by international organist Richard Hills.
It was made in America in 1937 and is almost identical to the famous Blackpool Tower ballroom Wurlitzer.
l Attempts to demolish the Ritz and build apartments failed and it is still in business as a dance hall.