Edinburgh Council has approved plans for a £10m library and council building – marking the first stage of the regeneration of Craigmillar town centre.
The £10m development will house 350 council staff and house a library on the ground floor.
The council plans to appoint a contractor by the close of the year so that work can begin early in 2011.
It is hoped the proposed development will kick-start work in the area, which stalled as a result of the recession.
Other potential developments in the £250m Craigmillar town centre masterplan include a supermarket and residential housing on the site of the old Niddrie Mill Primary School
Tom Buchanan, convener for economic development, said: “We view this as a flagship development that will act not only as a signal of this council’s ongoing commitment to regeneration in Craigmillar but also as a trigger to further private investment in the area.
“Of course, in these difficult times, developments such as these will create welcome job opportunities in construction and other related areas.”