Muse Developments has received planning consent for a major transport interchange as part of the £100m South Shields 365 regeneration project.
Transport operator Nexus and Muse will demolish the existing Metro station and build a new transport hub with a ground-level bus concourse and first-floor Metro platform.
It is hoped that the new station will make the arrival point into the town more attractive and connect the Riverside and Foreshore areas, boosting visitor numbers to the Tyneside town.
Approval follows improvements to the adjoining Market Place, the on-going construction of The Word, the North East Centre for the Written Word and a new 40-space car park on vacant land at Harton Quays.