Liverpool developer Elliot Group is behind the scheme to build four new blocks rising up to 10 storeys high and alterations to one existing block with space for more than 400 flats.
There will also be a new home for club Cream and a performance space to be managed by the team behind The Kazimier venue under the plan drawn up by Liverpool architect Falconer Chester Hall.
Work is set to start in August and is due to take 18 months to complete.
Director Elliot Lawless said of the decision: “Newry Construction have performed time and again for us and were able to demonstrate how they could apply the same methodology to deliver quality and value at Wolstenholme Square.“