A 15th Century derelict hotel is to be redeveloped into a boutique hotel and restaurants.
Gloucester City Council said it would revamp the Fleece Hotel in Westgate Street, which has been empty since 2002, with a private developer.
Councillor Paul James said a “solution had been achieved” for the “enormously complex site”.
No start date has been agreed and the work will be carried out in phases, Developer Dowdeswell Estates added.
The firm said the project for the Grade I listed building was “still at a conceptual design stage”.
“It’s a multi-million pound project, it’ll be done in phases,” said managing director Rod Jenner.
He said the company was looking at “several funding resources” and added there had been “a lot of enquiries from people who want to get involved”.
The Fleece opened in about 1497 to house pilgrims visiting the tomb of King Edward II.