Focus announced last year that it would create up to 25 jobs and build a new store at the Galalaw business park.
And planning permission was granted in January for a 20,000 sq ft retail warehouse with an adjoining 10,000 sq ft garden centre.
But a wrangle was left unresolved over costs to clear remaining landscaping and hidden rubble after the building of a nearby slip-road from the site.
And Focus turned its back on Hawick in April.
The local councillor for the Galalaw area, Andrew Farquhar, has worked tirelessly behind the scenes to avert the DIY disaster.
And he was delighted when TheSouthern broke the news this week that the new £3.5million deal had been signed. He said: "I knew we were close to having everything signed. It's fantastic that it has finally arrived.
"When Focus decided to pull out I was totally devastated. I hoped they would kick start a retail boom in the town. I've almost begged some people to get this going – you have no idea how pleased I am.
"We can start looking forward again – one big retailer will attract others."
With planning permission already granted for the site, building work is scheduled to start in January.
Commercial property developer Hamish Henderson has helped broker the deal. He told us: "This is a significant undertaking by Homebase and has to be welcomed. We intend to start the construction work straight after the festive holidays – and it should take around six months to complete.
"The spin-offs for Hawick and the surrounding area will be great and hopefully it will attract other major retailers to the town."
The three-acre site at Galalaw was sold this week to the developers by Scottish Enterprise Borders and the council.
Nigel Watson, director of business at SEB, commented: "This is welcome news for Hawick and the Scottish Borders. This is important for the town in terms of creating jobs and helping to diversify the local economy, and it is a major boost to local confidence that a national retailer is prepared to invest £3.5million in the area."
Homebase was founded in 1979 and now has almost 300 stores spread across the UK.
The DIY and garden centre chain is part of the Argos Retail Group – and one of its sister companies could also be making a move to Hawick.
It is believed bosses from catalogue chain Argos have been in talks for several months about the site of the former fire station on Commercial Road.
But the councillor for the Silverbuthall area remained tight-lipped.
When asked about the prospects of the prime site, Mary Beck blasted: "You are getting nothing out of me."
A spokeswoman for Argos was more talkative. She said: "We constantly review all parts of the country for future Argos stores, however, at this stage we do not have any firm plans in place to open an Argos store in Hawick."