The former police station in Market Street will become a £17m student accommodation scheme containing 225 beds.
The nine-storey development is anticipated to be completed in 2018.
Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc, said: “We are very pleased to have secured planning consent for this exciting development.
“Located in the city centre of Newcastle with easy access to university campuses, local facilities and public transport it is well positioned for student accommodation.
“This latest scheme adds to our growing pipeline and further builds our visibility around the Group’s business model.”