A new building is set to rise on the site of the former Angora restaurant at 199 Victoria Ave.
The existing building was severely damaged by fire in October 2016 and has been unused since.
Noel Mouldey, of The Building Design Company, said the Whanganui District Council has granted resource consent for the new building which will have a floor area of approximately 280 square metres to be divided into one, two or three tenancies, depending on tenant requirements.
"It will be called 'Headwaters' to reflect its location at the 'gateway' to Whanganui's central commercial area, leading to the Whanganui River," Mr Mouldey said.
"Materials to be used in the construction will similarly suggest harmony and connection with the river, for example stonework columns and timber facades."