Development partners, Muse Developments and South Tyneside Council will now begin the hunt for contractors to transform South Shields Town centre.
The first phase will include building a new Central Library and Digital Media Centre near Ferry Street on the Riverside as well as improvements to the adjoining Market Place.
A new 40 space car park will also be constructed on vacant land on Harton Quays as part of the works.
David Wells, Development Director at Muse Developments, commented, “We’re absolutely delighted that the planning committee has given the go-ahead for this first phase after a long period of public consultation.
“The next step is the tender process to appoint a building contractor with actual work hopefully beginning early next year.
“The development of the new Central Library and Digital Media Centre will create a superb and unique facility for the town whilst the redevelopment of the Market Place will breathe new life into an important South Shields tradition.
“This is just the first phase, however, of the town’s exciting 365 plan which will link up the town centre, the Foreshore and the Riverside areas.”
Further consultation will take place with businesses and market traders over the next few months in the run up to starting on site.
Future phases of the “365 Master Plan” will include increased shopping and leisure provision and the development of a new travel interchange.