A 19th-century palace in prime position in the centre of the Vatican has been converted into a homeless shelter on Pope Francis' orders.

Key points: Palazzo Migliori was recently vacated by its religious order occupants and the question arose of what to do with the four-storey building in the centre of Vatican City

Palazzo Migliori was recently vacated by its religious order occupants and the question arose of what to do with the four-storey building in the centre of Vatican City Pope Francis ordered the building be converted into a homeless shelter, housing up to 50 of the city's poor and feeding dozens more

Pope Francis ordered the building be converted into a homeless shelter, housing up to 50 of the city's poor and feeding dozens more The Pope has implemented many practical measures to help the poor and homeless

Palazzo Migliori, which was constructed in the early 1800s, served as the headquarters of the all-female Calasanziane religious order, which used the building to care for young single mothers.

After occupying the building for 70 years, the order relocated to new premises last year and the palace was renovated, leading to questions about how it would be used.

Sitting on prime real estate just off St Peter's Square, the building could have generated significant income for the Catholic Church as a luxury hotel, but Pope Francis had other intentions.

On its news website Vatican News, the Vatican said Pope Francis personally directed his Almoner Cardinal Konrad Krajewski (his officer in charge of distributing services to the poor) to convert it into a homeless shelter.

The shelter will operate day and night and will house male and female occupants as well as providing social support. ( Supplied: Community of Sant'Egidio )

The four-storey building will house around 50 men and women, although the 16-bedroom facility has capacity for more during cold winter temperatures, Cardinal Krajewski said.

The lower levels will be used to provide social support to the occupants, including computing, reading, recreation, and psychological counselling.

Volunteers can also use the building to prepare meals for homeless people who were sheltering elsewhere.

Cardinal Krajewski said the Vatican requested the construction company in charge of renovating the building employ homeless people during the overhaul.

The four-storey building was built in the early 1800s and was used for 70 years by a religious congregation devoted to helping single mothers. ( Supplied: Community of Sant'Egidio )

Andrea Riccardi, founder of Rome-based Catholic association Community of Sant'Egidio, which will run the shelter, said all people should be welcomed by the Vatican.

"The important thing is that here we are in front of the Vatican, within the heart of the Pope, the poor have a home in front of the Pope," he said.

"We are on Vatican territory, it belongs to the Vatican, and we of Sant'Egidio are delighted to cooperate with the Almoner of the Vatican."

According to an article on the Sant'Egidio website, the Pope's first words when touring the facility were: "beauty heals".

'A palace for the poor'

Pope Francis blessed the venue in November and dubbed it "A Palace for the Poor", just ahead of World Day of the Poor on November 17.

The building has been owned by the Vatican since the 1930s. ( Supplied: Community of Sant'Egidio )

Resident of the facility Mario Brezza told NBC News the place "feels more like home".

"I have my own bed, room and bathroom," he said.

"It's so different from the dormitories I have tried until now, where sometimes you feel like an animal in a crowded stable."

It is not the first time Pope Francis has implemented practical measures to help the poor and homeless in Vatican City.

Last year, Cardinal Krajewski — on the pontiff's orders — broke a police barrier and shimmied down a Rome manhole in order to restore electricity for hundreds of homeless people living in an unused building.

Pope Francis previously said he wished to be the head of "a poor church for the poor". ( Supplied: Community of Sant'Egidio )

In 2015, the Pope ordered that a homeless man who was well-known to many priests be buried inside the Vatican, within a cemetery normally reserved for senior clerics.

Earlier that year, showers for the homeless were installed in public toilets just yards from St Peter's square at the pontiff's request.

It aligns with Pope Francis' stated intention for "a poor church for the poor" upon his election in 2013.