An Bord Pleanala have given permission for a new plan for a cultural quarter at Parnell Square.
The plans for the redevelopment include a new city library, a public plaza, and a conference centre.
Under the plans, some of the area’s Georgian houses are also expected to be restored.
The cost of the project is estimated to be around €110 million – nearly double the original estimate.
Dublin City Council will pay 45% of the bill, with the other 55% to be funded through donations. DCC made its submission to An Bord Pleanala for the plans last September.
Speaking on the approval, Lord Mayor Nial Ring said: “This part of the north inner city will eventually be a cultural, social and economic hub. The whole area will be transformed with the completion of this new city cultural quarter.
“The fact that it is being part-funded by philanthropy is an exciting, new and innovative way of giving life to this neglected part of town.”