Ipswich Borough Council has given planning permission for a £50 million mixed-use scheme in the town centre.
Joint developers Turnstone Estates and Revcap have been granted permission to develop the 120,000 sq ft (11,150 sq m) Westgate Centre for new retail space, catering units and 500 parking spaces.
Demolition work has already begun on the site, with construction due to start in the summer. The project is expected to be completed by summer 2011.
CB Richard Ellis and Savills are advising on lettings for the scheme.