The £30m regeneration of the former Travelodge site opposite Silverlink Shopping Park, Newcastle, has been granted planning permission.
The Crown Estate-owned site will be developed into a 106,000 sq ft retail scheme, comprising four retail units.
Next has already agreed to take 52,000 sq ft of space for a flagship Next Home and Garden shop.
Construction is set to begin in the summer and is scheduled to complete in autumn 2016.
Hannah Milne, regional portfolio manager at The Crown Estate, said: “We’re delighted with the committee’s decision and look forward to progressing our plans for regenerating this site.”