PETA had been calling for the removal of Dillan from the Union County Sportsmen's Club in Milmont.
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The bear, who they say is morbidly obese, lived at the club's wildlife sanctuary for 16 years.
A few months ago, someone filed a complaint to PETA about Dillan's living conditions.
Besides Dillan's weight issue, PETA said the bear had a life threatening dental disease and was in a cramped cage. They campaigned for his release.
Actor Alec Baldwin also joined the fight.
He sent a letter to Governor Tom Wolf asking for his help rescuing the bear, saying, "I respectfully ask that you use your power to ensure that authorities hold the club accountable."
On Monday, PETA announced Dillan will be heading to the Wild Animal Sanctuary in Colorado.
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The bear was rescued from another sanctuary in Northumberland County before being moved to Union County Sportsmen's Club's sanctuary.
The club has nearly 5,000 members. Its wildlife sanctuary has more than two dozen rescue animals.
Club president "Bear" Spangler said all the animals get regular medical care.
"We had state and federal inspectors here. We meet all of their criteria," Spangler said.
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CNN contributed to this report.