Plans have been approved to convert the Lambton House building, also known as The Bridge Hotel, into a new pub complete with a beer garden.
It was used as a bar until the late 1990s before being turned into offices for the youth offending service.
Developers argued it would help “contribute to the vitality of the city centre”.
The venue is historically famous for having hosted Charles Dickens, who was performing at the nearby former Lyceum Theatre in 1854.
The application, which includes the refurbishment of both the interior and exterior, was submitted in September this year.
Plans show that the forecourt would also be used as a beer garden, while upper floor offices would be retained.
The Local Democracy Reporting Service said Vaux Brewery is set to move into the pub, creating a viewing area where patrons can watch the brewing process.
Sunderland and South Tyneside Campaign for Real Ale (CAMRA) supported the plans and said it would “fit well” with its own desire to “highlight the heritage pubs within our branch area”.
Sunderland City Council said the vacant ground floor of what will become the pub had been “contributing toward a decline in the visual attractiveness of the immediate and surrounding streetscape”.
“It is considered that the proposed works would have no unacceptable impacts on architectural significance of the listed building,” a report said.
The council imposed conditions that works to the pub must start within three years.