Newcastle City Council have announced that funding has been secured for a 200 million pound development that could create more than 2000 jobs in the city.
Developers Silverlink are understood to have agreed a deal with Aviva and Royal Bank of Scotland to regenerate the historic Stephenson Quarter around Central Station.
The project had been due to start in March 2011 but was shelved because of the economic climate.
However, the council now says that work will begin immediately.
The 10-acre site will include a new hotel, office space and an art gallery.