BBC Cymru Wales is to move to smaller premises in Cardiff.
The broadcaster will relocate from Llandaff in the north-west of the Welsh capital to a new development near Cardiff Central rail station.
The decision was prompted by ageing facilities at the current base and a pressing need to modernise.
Options to upgrade the current site were ruled out as costlier and more disruptive. The sale of the current site will help fund the new development.
The move is expected to kickstart a major urban regeneration project around the rail station.
BBC Wales director Rhodri Talfan Davies said: “The plans for Capital Square don’t just make excellent financial sense, they are groundbreaking too.
“The new broadcast centre promises to be an exciting new home in a remarkable location right at the heart of the action. The public rightly demands the best from the BBC – and this development will at last give our programming teams the tools, the technology and the facilities to serve our audiences for decades to come.”