The site sold for $5.75 million which was well over reserve.

The winning bid came from a Sydney-based company that owns "several service stations" and has "other business interests", the agents from Raine & Horne Commercial in Canberra said.

The 17 registered bidders were made up of local developers, major service station representatives and fast food franchises.

It was not bought by Coles or Woolworths, the agents said.

The 6937-square-metre site is zoned as a service station and a restaurant or takeaway shop will also be allowed.

The new petrol station will also be a much-welcomed second station for neighbouring Weston Creek.

Currently, Weston Creek's 23,000 residents rely on a single station at Cooleman Court, where drivers are regularly subjected to long queues and the service station sometimes runs out of fuel.

The site of the new station is north-west of the Cotter Road and Kirkpatrick Street intersection, easily accessible from the Tuggeranong Parkway.

The choice of site follows a petition launched by the Canberra MP Gai Brodtmann more than 12 months ago for a petrol station at the intersection.

Settlement is due on February 1, 2016, according to the ACT's Land Development Agency website.