Melbourne City Councillors have given approval for a 295m skyscraper on the site of the old Suncorp building at the corner of Collins and Williams streets.
The council agreed to trade off long-held opposition to overshadowing of the Yarra River, in return for a new park on the site. Planning minister Matthew Guy has yet to approve the plan.
Under the deal endorsed by MCC for 455 Collins Street, developer Cbus will give the city 1900m² of land for a park.
The Collins Street block was owned by Melbourne City Council until it was sold to National Mutual in 1992.