Herefordshire Council approved developer Stanhope’s plans to build 300,000 sq ft of leisure and retail buildings despite strong local opposition to the scheme.
The Edgar Street Grid project will include a six screen digital Odeon cinema, a department store, a Waitrose supermark and several shops and restaurants.
Building work could begin this year with a view to the centre being open in time for spring or summer in 2013.
A new cattle market is due to open on the outskirts of the city in June this year.