Plans for the creation of Doncaster's Civic and Cultural Quarter (CCQ) have received outline planning permission.
The regeneration includes a new public square and revamped open space.
Doncaster Council's cabinet member for business and regeneration Jonathan Wood said: "The scheme is progressing well and outline planning is a significant milestone to have passed. Demolition work at the site is well underway, and we are looking forward to seeing the project come to life, transforming a declining part of the town centre into a regional business and cultural hotspot.
"There's still one final push needed before the vision can become a reality and that's securing grant funding support from Yorkshire Forward. We are hopeful this will be determined in the next few weeks."
In the coming months, a series of full planning applications that set out detailed designs of the buildings included in the first phase will be submitted to the planners.
Construction of the first phase is expected to begin next year and should be open for business in 2012.
The redevelopment of the 25 acre brownfield site on the south side of Doncaster's town centre will take about eight years to complete.
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