Planning permission has been granted to restore the former Granada Cinema in Walthamstow into a performance venue.
The venue promises to bring audiences the “biggest stars of the comedy world” and an annual Walthamstow pantomime.
Soho Theatre will run the new venue, which will include a 950-seat theatre, a bar and restaurant, community space and a garden terrace.
£25 million is being invested into the venue’s revival as part of Waltham Forest Council’s London Borough of Culture legacy.
A press statement from the council said that the development is "crucially important to help support [the area’s] economic recovery and resilience during these uncertain times".
The refurbishment will begin immediately and is expected to be completed in the spring 2022.
According to the council, contractors will be operating under revised health and safety protocols in order to comply with government guidance around social distancing.
Soho Theatre creative director David Luff said: “Alongside the council for their incredible support, we’d like to acknowledge and thank the very many local people who campaigned for years for this building to remain as an entertainment venue.
"We’d like to see that local ownership at the heart of a future programme that involves local schools, community groups and residents from across the borough.
"At the same time, we want a local theatre with a national profile. We will bring some of the biggest stars of the comedy world and welcome audiences from London and beyond, as well as producing an annual Walthamstow panto, theatre and performance, screenings and special events."
Soho Theatre will announce its first season for the venue towards the end of 2021.
The council believes that the local economic benefit from the theatre will be more than £50 million over 10 years.
Simon Miller, lead member for economic growth and housing development at Waltham Forest Council, said: "We are very excited to get started on the restoration of this iconic building with such a strong cultural heritage.
"We are delighted to be working in partnership with Soho Theatre to open-up this very special venue, bringing an outstanding contribution to our vast cultural offer.
"The development will also provide local jobs, opportunities and a welcoming community space. These combined with growing visitor numbers, will provide huge economic benefits to our borough for years to come."
The venue originally opened as a music hall in 1887, and was converted into a cinema in 1907.
It has been disused since 2003, and was purchased by Waltham Forest Council last year.