Plans for a new council-run office complex for creative businesses have won £8.6m from the government's levelling up fund.
Leicester City Council wants to transform a former factory which it owns in King Street into a new hub which could support 250 jobs.
The Pilot House site is made up of five interconnected buildings and would be aimed at start-ups and growing businesses.
The council announced the proposals last year, and secured 75 per cent of the funding needed for the £11.4 million project – including £2.8 million which it has committed.
The former factory, which sits off New Walk, was built around 1900 and is one of many industrial heritage buildings in the city.
Existing industrial features, including parquet flooring and exposed brick and beams, would be retained, and an entrance into a new courtyard would be created from King Street.
The central courtyard and an atrium would be built for shared use, as well as dedicated zone for technical and digital businesses and a co-working lounge.
The new space would accommodate creative industries and support training and skills development, education programmes meetings and events.
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City Mayor Peter Soulsby said: "This project will transform a group of architecturally significant heritage buildings into a landmark destination that will become a source of pride for Leicester.
"Not only will it contribute to the wider regeneration of the Belvoir Street, Market Street and New Walk areas, and complement exciting new developments like the Gresham Building, but it will also create and support hundreds of high-quality new jobs.
"I want to congratulate council officers, whose hard work and successful bids have helped attract millions of pounds for Leicester from the Government’s Levelling Up Fund.
"This new investment will give a huge boost to the city’s growth and economic recovery."
Working with the city's two universities, the city council hopes that Pilot House will offer skilled roles that encourage graduates to remain in the city when their studies are over.
Simon Bradbury, Pro Vice Chancellor, Dean, Faculty of Arts, Design and Humanities at De Montfort University, said: "We are delighted that Pilot House has been successful and will offer opportunities particularly for small and medium-size businesses in the creative industries, including for our graduates.
"Working with the city we hope to bring partners in the Fashion and Heritage sector to Pilot House to support specialist training in these industries."
Work on the site could start in early 2023 – subject to planning permission – with the building open for business from Spring 2024.