The Land and Environment Court has approved a 22-storey residential development in National Park Street on the site of Proski, Newcastle Leagues Club and Musos Corner.
The Newcastle Herald reported last year that prominent Newcastle businessmen Paul Siderovski and Gavan Reynolds had lodged plans for a $70 million twin-towers project which would eclipse the city's tallest building.
The building is 76 metres at its highest point, 16 metres above the 60-metre height limit for the site and three floors higher than the Verve apartments next door.
The company behind the development, EXP No 1 National Park Street Pty Ltd, took City of Newcastle to court over its deemed refusal of the project, which includes 193 apartments.
The two sides reached an agreement during a conciliation conference in August and Land and Environment Court commissioner Peter Walsh ratified that deal on Monday.
The Newcastle Herald understands the council and developer agreed on minor changes to the development application.