Work to build the new Saltergate multi-storey car park in Chesterfield is expected to begin in the autumn.
At a meeting on Monday, Chesterfield Borough Council's planning committee approved multi-million proposals for the car park which will have 530 spaces for shoppers and commuters.
Councillor Terry Gilby, the authority's cabinet member for economic growth, said: "One of the council's top priorities is to make Chesterfield a thriving borough.
"By investing in the new car park as part of the wider Northern Gateway scheme we will encourage people to use this part of our town centre.
"Now the planning application has been approved, work remains on track for a start on site in September."
A council spokesperson added: "Users of the new car park will benefit from an improved user experience.
"The new car park will have wider bays and a higher proportion of disabled and parent and child spaces than the old car park, which was demolished earlier this year."
The replacement car park will help serve the 89-bedroom Premier Inn hotel being built at the former Co-op building on Elder Way as part of the Northern Gateway development.
In addition, there will be environmental improvements on Elder Way and a planning application will soon be submitted for a new enterprise centre on part of the Donut car park.
Some concerns have been raised about the construction of the new car park.
During the public consultation phase, Central Methodist Church on Saltergate highlighted worries about the potential for noise and dust during building work.