Manchester City Council has given planning approval to real estate fund manager Prupim to demolish and rebuild Brazennose House.
Prupim plans 150,000 sq ft of office space at Brazennose House, on Lincoln Square off Deansgate, around 3,600 sq ft of retail and 4,800 sq ft of restaurant space at ground floor level.
Prupim said there will also be a new public piazza in front of St Mary's Church, which will be opened up by the cutting back of the building from its current footprint.
Designed by Squire & Partners, the project is being delivered by Prupim on behalf of the building's owners, The Prudential Assurance Company. Prupim also redeveloped the Arndale Centre on behalf of the same client.
The planning application was submitted by Drivers Jonas Deloitte following consultation with local businesses and St Mary's Church undertaken by GL Hearn's strategic communications team.
William Rooke, development manager at Prupim, said: "This decision provides yet another jigsaw piece in support of the city's regeneration strategy and inward investment objectives. The influx of some 1,250 new employees in the redeveloped Brazennose House will have a hugely positive regenerative effect on this important commercial area.
"As well as meeting the next wave of demand for prime office space and headquarters for corporate occupiers in the city centre, this area will be reinvigorated by much-needed improvements to the public realm of Lincoln Square with the new piazza. We will now be able to deliver a destination for business, fitting for the scheme's prime city centre location."
Jones Lang LaSalle is instructed to find a pre-let for the building after which construction will commence.
Demolition of the building could begin in spring 2012 with completion anticipated around summer 2014.