A four-storey building which will feature ground-floor retail space and apartments above will be built on the land on the corner of Victoria Street and Cleveland Street.
Wolverhampton Council planners approved the application by Beauford Group and it is hoped this will finally see the area redeveloped.
The buildings had deteriorated over a number of years before they were finally demolished six years ago and the land fenced off.
Planning applications for apartments and retail space were submitted and approved in both 2014 and 2016 but did not materialise.
The area is surrounded by mostly retail and business units and sits in both the Worcester Street and South of the city centre conservation areas, with Grade II listed buildings nearby.
In Beauford Group’s application, a heritage statement said: “The previous buildings on the site were in a dangerous state of disrepair and permission was granted to demolish them in 2014.
“This work has now been completed and the site is vacant and is bound by a timber construction hoarding to both Victoria Street and Bell Street. None of the previous buildings on the site were listed buildings.
“The site is a prominent corner location at the intersection of Victoria Street and Cleveland Street and its current state is having a negative impact on the conservation area.”
“As the site is currently vacant and surrounded by an unsightly hoarding which has become an attraction for fly posters.
“It is considered any development of the site would be an improvement to the area and offer a positive impact on the conservation area and the application should be supported.”
Planning officer Colin Noakes said: “The proposed development is of an appropriate scale, massing and design.
“It will allow this vacant site to come back into use to the benefit of the conservation area and the viability and vitality of the wider city centre.”