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The £700 million redevelopment of Preston city centre is set to go ahead after a legal challenge by a nearby council failed.
Last November, Local Government Secretary Eric Pickles ruled the Tithebarn development should go ahead, over ruling the planning inspector.
Blackburn with Darwen Council appealed his decision at the Administrative Court. But Mr Justice Langstaff upheld Mr Pickles' decision.
Leader of Lancashire County Council, County Councillor Geoff Driver, said:
"We're very pleased because Tithebarn is essential to growing the economy not only in Preston but across Lancashire.
"A thriving Preston city centre will help the county to keep up with other growth areas in the North West, competing for investment, jobs and visitors.
"This decision is an important milestone and now we and the other partners in the scheme can get on with the challenge of turning these exciting plans into reality."
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