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."
Mr Mouldey, who is the architectural designer of the building, said construction will start as soon as an anchor tenant has been confirmed.
"The owner is about to commence a marketing campaign in an effort to attract tenants for the building. We hope that construction will begin within two or three months.
"Buildings that are 100 per cent NBS [New Building Standard] in Whanganui are few and far between so this new development may attract a good solid tenant fairly quickly.
"Hopefully this new development will be of interest to the community and help boost the economic positivity and confidence that is currently evident in our town."
The building owner is Lawrence Trading Company of Tauranga. The company is owned by former Whanganui people.
City restaurant devastated by fire