Listed buildings consent for the scheme was also approved.
The 1.7 million sq ft Edinburgh St James scheme is one of the largest regeneration projects currently underway in the UK.
The 1970's shopping centre will be replaced with 750,000 sq ft of retail space, a luxury hotel, up to 250 homes, restaurants and a multi-screen cinema.
Proposals designed by Purcell include the conversion and alterations to St Andrew's Hall and 27-31 James Craig Walk in a £850 million development.
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St Andrew's Hall will include a three storey extension, complementing the existing structure.
Office and restaurant space will be provided along with a base for centre management, training facilities and a security centre.
The planning committee confirmed it was 'minded to grant' proposals for 27-31 Hames Craig Walk.
However this is subject to a legal agreement which will follow TH Real Estate's acquisition of the building in 2016.
The interior of the building will be modernised with up to 20 new homes developed.
Commercial space will also be created on the lower floors.
Martin Perry, Director of Development TH Real Estate, said: "The City of Edinburgh Council’s decision marks an important milestone for the Edinburgh St James development. Careful and thoughtful consideration was given to the design for both buildings, and we are pleased the council has recognised and supported our vision for how they complement the wider development."
(LM)
