Work will involve demolishing the existing buildings at 149 and 151 Oxford St in the Soho Conservation Area.
The new development will include three floors of retail space, offices and apartments in the five-storey scheme which will also boast a basement and roof garden.
Capita Symonds division ESA has been appointed by the Co-Operative to design and deliver the scheme.
Kevin Wylde of ESA said: “The project provides a great opportunity – as part of the ongoing regeneration at the eastern end of Oxford Street – to design a landmark, contemporary, sustainable mixed used scheme which also enhances the character and appearance of the conservation area and repairs the damage done in the 1950’s.”
The hunt is now on for a main contractor with work set to start on site later this month and be completed next spring.