The World Wheel Company had submitted its application for the wheel, a large LED screen, a three-storey family entertainment centre and three two-storey units containing food and drink outlets.

Newcastle City Council’s planning committee has granted planning permission, subject to conditions being met, for the wheel and the associated buildings. A decision around the screen, which is planned to show advertisements and public information, has been deferred to a future planning meeting.

Cllr Ged Bell, Newcastle City Council’s cabinet member for employment and investment, said: “The idea of one of the world’s biggest observational wheels operating here in Newcastle has captured a lot of people’s imaginations.

“The development has the potential to be a real game-changer, creating hundreds of jobs for local residents and attracting thousands of new visitors, which can only be good for shops, restaurants, cafes and local businesses.

“I am delighted that the planning committee has approved these exciting plans. They have listened to all of today’s speakers, and I look forward to seeing this derelict site coming back to life over the coming months.”

The committee heard the development would deliver more than 800 full-time employment opportunities alongside hundreds more construction jobs.