Ipswich Council has granted planning permission for St Clement's Church to be repurposed into an arts centre and music venue.
Planning officers said the scheme would "add significantly to the vitality and viability of the town centre".
Councillor Carole Jones added: "Everybody would wish to see this beautiful building brought back into some use for the benefit of the community."
Work is expected to begin on the Grade-II listed building, which has been vacant for more than 40 years, before the end of the year.
Planning permission was first granted in 2016 but did not move forward due to insufficient funds.
Ipswich Churches Trust confirmed funding for the first phase of work has been secured and hopes the announcement will lead to further donations.