The historic Municipal Bank building is to be restored as a city centre exhibition venue for the University of Birmingham.
The landmark Broad Street building has been empty and mostly unused for more than a decade and the city council has until now struggled to find a suitable tenant.
The university has now come forward with a plan to restore the Grade II-listed building and turn it into a city centre showcase to display its research and host performances and exhibitions.
Council Labour leaders are expected to approve a long lease for the building when the cabinet meets next Tuesday while the university is looking to rubber stamp its side of the deal later this month.
City leader Coun John Clancy said: "It's great news that this building, which was at the very centre of municipal life in Birmingham for many years and provided sound banking services for the city's citizens, is going to be brought back into public use.
"Not only will the council receive a substantial capital receipt in return for selling a long lease on the building but Birmingham will acquire an important gateway to the research and cultural assets this historic institution to complement the city's growing reputation as a first class cultural venue."
The UK's only Municipal Bank was founded by former Lord Mayor Neville Chamberlain during the First World War and operated from the Council House and Edmund Street for several years before building the new headquarters on Broad Street in 1933.
The building, opposite Centenary Square and the Library of Birmingham, was designed by architect Thomas Cecil Howitt in the Monumental Classical architectural style.
It stands at the heart of an area of major regeneration with work on Paradise Circus, the HSBC Bank headquarters at Arena Central, Centenary Square and the next extension of the Midlands Metro tram either under way or imminent.
Trevor Payne, director of estates at the University of Birmingham, said: "This is an exciting opportunity for the University of Birmingham to further cement its role as an important civic partner in the city and maximise on a new presence between the commercial and cultural centres.
"We will continue to work closely with the city council and partners to develop a central university hub to further enhance access to our world-leading research expertise as well as our education and cultural portfolios."
The city council bought the empty building in 2006 to help kickstart the redevelopment of the former ATV studio at Arena Central.
But those plans were mothballed during the economic downtown and the city has embarked on a long search for a suitable tenant ever since.
It has occasionally been used to host public exhibitions, including the Universe of Sound show hosted by the Symphony Hall in 2013 and the Hidden Spaces photography exhibition in 2015.
BBC TV productions Hustle, Line of Duty, Survivors and Toast have also used the building as a studio.
The council first put the building's lease on the market in 2013.
At the time, councillors were keen that it found a cultural or heritage use in keeping with its location near to the library, Birmingham Rep and Symphony Hall amid fears that a pub or nightclub would be more likely to take up residence.
A year later a consortium of faith groups in the city looked at establishing a Museum of World Religions there but the plans never got off the drawing board.
