Burnley Council has given planning permission to the Manchester-based developer for a £40m retail scheme on Curzon Street.
Henry Boot Developments submitted a revised application in February for 173,578 sq ft of new retail anchored by a 50,000 sq ft Primark and 20,000 sq ft Next.
The project, formerly known as the Oval, was first proposed in 2004 offering 191,274 sq ft of new retail which incorporated all the properties on Curzon Street, but the scheme stalled when the recession hit.
Within the revised proposals, all the properties along Curzon Street are now being retained by Henry Boot.
Steve Rumbelow, Burnley Council chief executive, said: "This planning approval takes us another big step forward towards making this multi-million pound investment in Burnley's future a reality."
"The plans set out a clear vision for the transformation of that part of the town centre.
"Burnley faces stiff competition from other towns and cities and we have to offer shoppers as wide a range of shops as possible in order to bring them to Burnley to spend their money.
"Not only will this new shopping centre bring a better choice for shoppers, it will also benefit existing businesses by bring more visitors to our town and create new jobs."
A spokesman for Henry Boot added: "We're delighted by tonight's decision and the opportunity to take the next step in delivering this exciting development for Burnley. This is a testament to the ongoing hard work and strong partnership between Henry Boot and Burnley Council which is set to deliver positive results during these testing economic times."
Traders on Curzon Street did raise concerns about the restrictions for heavy goods vehicles on Standish Street and Bankfield affecting deliveries to their premises but a council report said there would be no restrictions on deliveries to these properties.
Traffic congestion was another concern but the council said it is in discussions with the developer about these issues.
Henry Boot said last month that talks are also continuing with other high street retailers to pre-let space at the scheme.
Richard Lucas Property Consultants and DTZ are agents for the scheme.