Leisure and retail developer Terrace Hill, part of Urban & Civic, has acquired a town centre plot from Burnley Council to build a £13m leisure scheme.
The 3.7-acre site off Active Way and next to Charter Walk Shopping Centre, is currently a car park and was previously the location of the Pioneer Co-operative building.
A planning application for the 43,000 sq ft scheme will be submitted by the end of the year, and the final designs will include space for six restaurants and a coffee shop in addition to a nine screen cinema.
An undercroft car-park with capacity for 287 vehicles will be developed to offset any loss of spaces caused by the development of the site.
Terrace Hill said it would work closely with the council to ensure the project is delivered by summer 2016.
Duncan McEwan, head of retail development at Terrace Hill, said: "The requirement for alternative developments in town centres is clear as shopping habits have changed, and leisure is the obvious addition that will help to improve the dwell times of shoppers. A scheme such as this will bring in families and will provide vibrancy in the evenings and at weekends.
"We are extremely pleased to have reached an agreement with Burnley Council, and are confident that our strong track record in delivering this new offer will add real value to the town, its residents and visitors."
Retail agents Brady & Co and Trevor Dawson have been appointed to market the scheme.