A former toy store is set to be bulldozed after the council gave the green light to the plans.
The former Toys 'R' Us unit near the Metrocentre will be flattened after the council's planning committee gave the go-ahead to demolition plans.
The huge unit has been empty since the firm went bust last year.
Now, a bigger unit looks set to be built on the same spot.
Gateshead Council papers state "interest has been expressed" from other firms who wish to move into the replacement unit.
The names of those firms have not been made public.
However, on Wednesday the council's planning committee voted to approve an application from Intu to demolish Toys 'R' Us and make way for the replacement.
The planning application said: "The redevelopment of the former Toys ‘R’ Us unit creates an opportunity for a new landmark retail unit, that will not only be fit for purpose in attracting a new tenant, but will also take the opportunity to lift the design standard and replace a poor quality building."
A design and access statement by architects Mountford Pigott claims the new unit is needed as the current building looks "dated".
The firm said: “Whilst the unit has been marketed, there has been very little interest due to its poor and outmoded appearance, and also the limited internal height of the unit that makes it difficult to incorporate a trading mezzanine to meet the requirements of modern retailers."
