ABC 7 News has learned the purchase price is $86 million and, as part of the agreement, Michael Reese's owner will provide a charitable contribution of up to $32.5 million for demolition and clean-up at the site.
Chicago 2016 spokesman Patrick Sandusky declined to comment on the agreement.
In recent months Chicago's Olympic bid team has sought to move the site of the proposed Olympic Village from air rights that would have been built over a truck marshalling yard south of McCormick Place to the Michael Reese location in an attempt to save money as well as redevelop the almost vacant hospital site.
When an earlier agreement fell-apart, Chicago Mayor Richard M. Daley indicated he had hoped talks would resume and deal could be reached. The mayor has said the hospital site is ideal for development regardless of whether Chicago wins the right to host the 2016 Summer Olympics.