A city centre site once earmarked for a 51-storey tower will now be home to blocks half the size containing more than 300 flats after plans were approved.
Birmingham City Council planners said they were delighted the empty site next to Alpha Tower in Suffolk Street Queensway would no longer be home to the "monstrosity" of the 'V Building'.
Once planned as Birmingham's tallest building almost two decades ago, the vision never came to fruition as a result of the economic slump.
Instead a modest pair of towers, the tallest a mere 23 storeys, will be built by One Birmingham, part of development group Dandara, on land in front of the Crowne Plaza Hotel and next to the new Arena Central scheme.
Before the council's planning committee meeting, English Heritage, the Twentieth Century Society and Birmingham Civic Society did not fit in with, and would spoil the view of, Alpha Tower.
But the committee dismissed their concerns and said the buildings, which should go ahead.
Coun Barry Henley (Lab Brandwood), who chairs the council's heritage panel, said the new towers would only partly restrict views of Alpha Tower.
"They are nice attractive buildings, not as tall as and attractive in its own way," he told the meeting.
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"They are also a massive improvement on the monstrosity that was planned which planes would have had to fly around."
Councillors were also pleased the blocks would deal with a ground level, wind tunnel effect which had been a nuisance to users of Alpha Tower for years.
Coun Keith Linnecor said: "It is far better than the previous plan. It's a good design."
He called for environmentally friend green roof to be installed which could be considered by the developer.
Rachel Allwood, planning director at Dandara, said: "We are delighted to have secured planning permission for new homes at the Arena Central site.
"The council's decision marks an important step in the ongoing regeneration of the area and will help address housing need too."