The 19th century hotel situated opposite to the station will see an existing extension knocked down and replaced by a new building with offices and retail units on the ground floor, while a new route to the town centre will be dotted with shops and cafés.
Moreover, there will be six new apartments and a new public square will be created in front of a new entrance to the station.
The plans received outline planning permission back in March 2015 but have now received final approval after more detailed proposals were submitted to the city council.
The planning application stated: “The Great Northern Hotel has the potential to be the centrepiece of any redevelopment proposals surrounding the station.
“The success of this development will contribute hugely towards the regeneration of this part of Peterborough.
“The proposals represent a new future in one of the most accessible yet neglected areas of the city.
“The development will significantly enhance the quality of the environment upon arrival at the railway station and provide an attractive destination and sense of place.
“New comprehensive landscaping proposals and an active street and retail frontage will enhance the experience for pedestrians and cyclists to travel into and back from the city centre.”
The proposals will also deliver an extra 47 rooms for the hotel, 51 parking spaces and 200 cycle spaces.
The Great Northern opened on April 1, 1852 at a cost of £2,500. It was designed by architect Henry Goddard, and during its early life its ownership was linked with that of the nearby railway.
After the Second World War, when it was closed to the public, it grew in popularity as a wedding venue with comedian Ernie Wise among those who celebrated there.
In 1952, Laurel and Hardy stayed at the hotel for two weeks at the start of their UK tour, while it was later owned by Pizza Express owner Peter Boizot who died in late 2018.
Plans to revamp the Station Quarter are currently being progressed by a number of stakeholders, including the city council.
If brought to fruition the redevelopment will include a new station and an office park, as well as retail and residential usage and two new multi-storey car parks.
In addition, the council is lobbying for the Government to move one of its departments there.
