The current 60s buildings will be demolished to make way for a 250-bed hotel, with around 30,000sq ft of space for retail, restaurant and leisure uses on the basement and ground floor, with office space on the first four floors.

Work on the two new buildings on the site will create up to 750 construction jobs.

The development will also include the refurbishment of the Grade II listed, number 67 Clayton Street, which will form the entrance to the proposed office element of the scheme.

The proposed 705-bed student accommodation complex is on the Grainger Street side of the development site.

The Newcastle office of Nathaniel Lichfield & Partners (NLP) is advising on planning.

Ian Kettlewell, associate director at NLP, said: “This new development will revitalise this area of the city centre.

“The design by a local architect has been finessed in close co-operation with the council planning officers and local stakeholders.

“It reflects the vitality of Newcastle but is respects the much loved heritage of Grainger Town.

“It includes the restoration of 67 Clayton Street, which in turn has the potential to encourage the restoration of other properties on Clayton Street.”

McAleer and Rushe acquired the site in in 2006 and secured a similar planning permission in 2011 for the redevelopment of the site to include three hotels, offices, retail and leisure units.

Subject to planning demolition of the Newgate Centre could begin before the end of the year.