Engineers have already moved onsite to kit out the store, which will the first new tenant in the town's renovated Grove shopping centre.
Town Centre Manager Eric Tommasini welcomed the announcement.
-- Advertisement --
He said: "Concrete plans are now in place.
"They were expected to come before Christmas but that is not going to happen now.
"It’s great news for the town and for The Grove. It will be a perfect addition as it won’t interfere with other businesses in the town."
It is expected 30 jobs will be created at the new store.
Iceland made a failed bid for a Downpatrick store several years ago, which faltered after problems confirming an appropriate site.
Although an Iceland spokesman said that a timescale for the actual opening still remains 'unclear', it is expected the new store will open after Christmas.
(PR)
