Ocean Terminal is set to be partially demolished under newly approved £100m plans to transform the Leith shopping mall.
Around a third of the complex would be bulldozed in order to revive the centre and make way for new housing.
Edinburgh City Council approved planning permission for stage one of the project, which would see the shopping centre transformed into a “community-led complex” focusing on those who live in the area.
The move would see the creation of a new range of housing alongside commercial units and public spaces featuring new walkways and cycle tracks along the water line.
As part of the plans, the north end of the shopping centre will be demolished and a new front will be constructed.
It comes two days after the Simply Food M&S shop in the centre announced it would be shutting down – with the company citing “changing” shopping habits as the reason behind the decision.
Ocean Terminal told STV News that M&S’s decision not to renew their lease at Ocean Terminal meant the shopping mall can “actively pursue a range of opportunities for partnership with alternative food retailers”.
Chris Richardson, managing director of Ambassador Investments said: “We are delighted that City of Edinburgh Council has supported our plans to reconfigure Ocean Terminal and this allows us to continue to shape the transformation of the centre and its important waterfront location.
“We are consulting widely to secure Ocean Terminal’s future resilience and sustainability and even against a backdrop of continuing change within the retail and hospitality sectors, we have been encouraged by an overwhelmingly positive reception to our vision for a centre that meets the needs of the local community.
“This is particularly reflected in tenant lease extensions, alongside the confirmation of new and long-term tenancies within the centre.
“With phase one approved, we are now in a position to finalise details for phase two before submitting these plans to the council later in the year.”