The Chilli Boys’ base was the Philippi Stadium in the Mother City when they won the National First Division (NFD) league last season.
The club was looking for a new home because Philippi Stadium is not suitable to host PSL matches.
It was earlier reported that a move to Port Elizabeth was off, but according to SABC TV news, the move is back on.
Chippa will play all their home games at the Nelson Mandela Bay stadium following a long awaited agreement with the Nelson Mandela Bay Municipality.
The deal was finally confirmed on Monday when the two parties put pen to paper.
This will be good news for Eastern Cape residents who have not seen any top-flight football since Bay United (now Polokwane City) was sold to the Limpopo province back in July 2011.
Chippa will play their first game at the 40 959 capacity stadium this coming Sunday when they host Kaizer Chiefs in a friendly game.
The game will be part of the Phefeni Glamour Boys’ pre-season tour to Port Elizabeth.
Kick-off is scheduled for 15:00.