The council has approved the decision to begin discussions with Notemachine UK, a company providing cash machines, to install the externally-accessible machine at the new indoor market.
It follows the closure of the Station Street-based Lloyds branch in February, leaving Kirkby without a physical bank in the town centre.
The closure meant residents can only access banking services through the town’s post office, on Kingsway.
Concerns were raised about the impact the bank closure could have on communities, with leaders from two opposing political parties fearing residents would be impacted by the lack of accessible banking.
Lee Anderson, Ashfield MP, said: “I have been meeting with Kirkby residents and shop holders recently and they all tell me the same thing – Kirkby needs more cash machines.
“This would replace the loss of cash machines after our banks have shut shop and will also help boost footfall.”
Coun Jason Zadrozny, council leader, previously said: “Not everybody banks online and, like the thousands of Kirkby residents impacted, I am very old fashioned and like to go in and talk about my account to the friendly staff.”
Now the council has confirmed it will begin negotiations about the new cash machine, which it says will prevent residents from having to either pay charges or walk to the nearby Morrisons to access cash services.
The authority estimates the new cash machine would carry out more than 5,000 transactions each month without costing the council for installation.
The council said: “With the closing of the bank in the town, there are now only two free to use cash machines both of which are located at Morrisons and due to demand, one is very often out of service.
“By providing a cash machine on the high street, members of the community will have access to cash without having to pay charges or walk to Morrisons.
“It is estimated that the new machine would carry out [more than] 5,000 transactions per month, with no cost to users of the machine or the council with its installation.”
David Lawrence, council interim director for place and communities, has approved the discussions with Notemachine UK, although no timescale has been specified.