A new hotel and a multi-storey car park in Gloucester city centre have been given the go-ahead as part of the King's Quarter redevelopment.
The £85m transformation plans, which include a multi-storey car park and replacing ageing buildings with 156 new homes, office space, restaurants and bars, were approved on Tuesday.
Plans to revamp the square were mooted in 2011 but faced set-backs in 2015.
Gloucester City Council said construction would start in early 2021.
The development will also allow spaces for markets, outdoor dining, a temporary stage, outdoor cinema and other leisure spaces.
Some of the work is already under way, with Bruton Way Car Park and the adjoining Bentinck House currently being demolished to make way for the new seven-storey car park, a hotel and 156 new homes.
The authority said the development was part of wider efforts to revitalise the "tired part" of the city centre, as well as King's Square and King's Walk.
Council leader Richard Cook said: "Our long-standing vision to regenerate and revitalise this part of the city can now finally become a reality.
"It will benefit residents, businesses and visitors to Gloucester not just in the short-term, but well into the future."