Blackpool Council is borrowing £400k for a new 300-seat restaurant and bar at the former Tower Lounge site, with the creation of 120 jobs.
A public bar, outdoor seating and a stand-alone kiosk are part of the scheme to transform the venue at the base of the Tower, which closed last November.
An operator of the new site has yet to be named. However, Iain Hawkins, head of the Merlin attractions in Blackpool, said, 'The restaurant will link in with the day-time attractions and the night-time attractions such as the theatres and bring Blackpool back to where it was.'