Blackpool Council has approved plans for an £8.5m hotel to be built on the site of the disused Palm Beach and Bourne hotels on Wimbourne Place.
Blackpool-based developer Create Developments has been granted planning permission for the 130-bedroom hotel which will also include a business hub, gym, bar and restaurant.
The new hotel, designed by Tim Groom Architects, Manchester will create approximately 40 jobs when it opens its doors in spring 2017.
Create Developments confirmed they are currently in discussion with Hilton as the hotel is expected to become a Hampton by Hilton.
Work will start on the site in November this year with the demolition of the existing building which was gutted by fire in June 2014. Around 70 firefighters tackled the blaze at Palm Beach during its peak, which resulted in neighbouring residents being evacuated from their homes.
Paul Mathison, Create Developments' managing director said: "We have been working closely with the planners over the past few weeks to ensure that we provided a building that responded to and took advantage of its unique location and reflected the character and heritage of the site in a modern way.
"There is clearly an appetite to invest in the town and we are delighted to be bringing a development that will benefit Blackpool and have a positive impact on the residents and business owners of South Promenade."
Tim Groom, managing director of Tim Groom Architects, said: "The town has such an important history and holds fond memories for many of us and it's great to now be part of its future.
"Our design looks to draw on the characteristics of the historic Blackpool Crescent buildings, reinterpret them with our own design language, while not forgetting the unique and special personality of the town itself."
Cllr Simon Blackburn, leader of Blackpool Council, said: "Everyone is aware of the pressing need to revitalise this site and, as a result, I'm pleased that permission has been granted.
"The addition of a high-quality internationally recognised brand is very welcome, as is the creation of a significant number of new jobs.
"I look forward to seeing work get underway."
A spokesperson for Hilton said: "Hilton Worldwide is in an exciting phase of growth and we are looking at many locations around the UK to introduce various brands from our portfolio.
"Blackpool is a destination which has attracted our interest, though nothing has been confirmed at this early stage."