Plans for a £260m arena, conference centre and hotel complex on the banks of the Tyne have been approved.
The development on land close to the landmark Sage and Baltic arts centres will include a 12,500-capacity arena which will replace the Utilita Arena across the river in Newcastle.
Gateshead Council's planning committee has granted permission for the waterfront complex, though the decision is subject to a potential call-in by the government.
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The scheme from developer Ask Patrizia had been opposed by a number of nearby residents, who had warned a 13-storey hotel was "completely at odds" with the rest of the area.
Council planners concluded that the hotel was "integral" to the £260m plans and pointed out that there are other tall buildings nearby - including the Sage, the Baltic, and a 20-storey hotel planned on nearby Mill Road.
Planning consultant Harvey Emms, speaking on behalf of the developer, told councillors that the complex would attract an extra 400,000 visitors to the area each year and add more than £60m annually to the local economy.
He called the development a "world class venue and landmark scheme" which would act as a catalyst for further regeneration in Gateshead.
Mr Emms added: "It will also facilitate improved accessibility to and drive footfall through Gateshead town centre and, at a time of real economic uncertainty, demonstrate clear commitment to invest and deliver a comprehensive scheme which will stand the test of time."
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Gateshead Council also recently approved plans for a new 10-storey, 1,000-space car park on Hawks Road to help cope with demand from extra visitors to the redeveloped waterfront. That is due to be in use by August 2022, before the arena opens.
Council planning officials said they believed the development's impact on traffic levels and neighbours' amenity "have been mitigated as far as reasonably possible".
According to their report, there will be a predicted 100 occasions per year when events at the site cause either a "significant" or "noticeable" increase in delays on surrounding roads - with average attendance between 3,200 and 10,000.
The council has confirmed that a third party has already requested that the application is reviewed by the National Planning Casework Unit, so it could yet be called in for a final verdict from the Secretary of State for Communities and Local Government.
Gateshead Council leader Martin Gannon said: "We've wanted to revitalise this key site for a long time. Our long-term aspiration has always been to bring internationally recognisable facilities of this scale to not just Gateshead but the entire region.
"This project is transformational, and today's decision signals confidence in the North East.
"Newcastle Gateshead Quays will be a global leader in entertainment, leisure, and hospitality but most importantly it is about creating new employment and training opportunities for thousands at a time when they are badly needed.
"Despite the current challenges, we need to remember the worth of the events industry. We look forward to opening the venue late 2023."