Tesco said it would now start the hunt for a main contractor to start work on building the new shopping complex later this year.
Tony Fletcher, Tesco corporate affairs manager, said: “We are extremely pleased with the planning committee’s decision, we can now begin preparations to move ahead with the project.
“Once we have secured the necessary road closure order and appointed contractors our ambition is to start work on site before the end of the year.”
The decision paves the way for the existing Crown Centre and Bell Street multi-storey car park to be demolished.
A 543-space parking area will be built below the store to replace the bulldozed car park.
Tesco’s plans also envisage a refurbished Town Square, created with a mixture of traditional paving and stonework and modern street furniture to create an attractive public area.
Council planning committee chairman Councillor Tim Wright said it would “meet the needs of today, for the people of today”.
Tesco hopes the new superstore and centre will be open by Christmas 2012.
Approval marks the end of a long-running saga as several stores, including the former Morrisons superstore and Spencer’s Market, pulled out of the centre in recent years.
In 2008 planners gave permission for a scheme on the Crown Centre site by developers Modus, but the credit crunch scuppered the proposal.
Dudley Council deputy leader, cllr Les Jones said: “The problem before was having a developer and the supermarket trying to thrash out a deal, Tesco are now doing it all themselves and they can just get on with the job.”