St James Securities has been given the go ahead for a 65,000 sq ft Morrisons on the old Field Road Campus of Derby College, in Ilkeston, Derbyshire.
Plans for the development include 39 houses and a petrol station, which will start trading by the end of 2014.
The consent means that Derby College can now build a £10m art campus on the site of the redundant magistrates court in the centre of Ilkeston.
It is hoped the development will kickstart the regeneration of the wider town centre.
lisa.pilkington@estatesgazette.com