Derby Bus Station will be demolished in May, according to new developers who have taken over the £83m Riverlights redevelopment project.
Derby City Council Cabinet has agreed to accept £2m from new developers, the Kailash Trust, as a safeguard in case they pull out after the demolition.
The entire project was in jeopardy after original developers, MetroHolst, went into administration.
The Kailash Trust bought MetroHolst's shares as part of a rescue package.
The project has faced opposition from some members of the public who wanted to save the 1930s Art Deco bus station.
Dorothy Skrytek, 44, a member of the Derby Bus Station Action Group, spent four months in a caravan on the top of the bus station in protest at the plans.