Westminster City Council last week granted developer Prime Investors Capital planning permission that paves the way for London’s Admiralty Arch to open to the public.
The former office space will now be renovated into a hotel, residences and private members’ club.
The redevelopment is part of the wider Cabinet Office strategy to change how it manages the government estate.
The Cabinet Office says this has shrunk by 16% since 2010 and generated over £1bn for the taxpayer through the sale of buildings and land deemed unnecessary.
The 99-year lease agreement signed between the government and the developer last October will raise £60M.
Originally designed as a ceremonial passage from Trafalgar Square towards Buckingham Palace, the Grade-I listed building’s renovation is scheduled to begin early next year.
The hotel is expected to open its doors to the public in 2016.