Submitted by Gray Macpherson Architects in March, the Three Stills Company venture on Commercial Road could create 20 jobs.

The company announced last year it had secured funding to support the distillery, which will be the first in the region since 1837.

A council report said the project complied with the local development plan.

“The development is appropriate for this town centre site and would be in keeping with the mixed use nature of the area,” it said.

“The proposal would result in the creation of jobs and would attract visitors to the town.

“The proposal would result in the renovation and re-use of the listed buildings which are on the ‘at risk’ register.”

The report said the development was considered to be “sympathetic and sensitive” and would “respect and enhance the character and setting” of the buildings.

It found that flooding and archaeological issues had been addressed and that the overall benefits outweighed a lack of on-site parking.

The firm is one of a number to have shown an interest in establishing a distillery in the region.

Mossburn Distillers lodged its plans last month for a £40m distillery south of Jedburgh while last year a competition by R&B Distillers saw the public pick Peebles as their preferred site for a distillery.