Emery Planning Partnership on behalf of Formby Hall Investments have gained planning consent for 14 student flats on the site of the Ormskirk indoor market.
The flats would contain 84 en-suite bedrooms, including 11 fully accessible rooms, above 10,000 sq ft of retail space.
The approved scheme, prepared by Seven Architecture, was the product of extensive consultation with both the local authority and Places Matter who provided design advice on the proposal.
Helen Leggett, principal consultant at Emery Planning Partnership, said: "This proposal shows a real faith in the future of Ormskirk town centre. It will be a major benefit to the town providing much needed purpose-built accommodation for Edge Hill University in a highly sustainable location and will positively benefit local businesses."
The market is operated by Geraud Markets based in Liverpool and there are market traders with ongoing tenancies. It is understood discussions are taking place over the future of the market. No one from Geraud was available for comment.