The construction of a new ferry terminal in Southampton has received planning permission.
It will be built at the Eastern Docks for Red Funnel, which runs services to the Isle of Wight, meaning the company will move from its current Town Quay base.
This will vacate space at Town Quay for a proposed £450 million waterfront development, for which planners will apply for permission in August.
Red Funnel plans to build the new £35 million terminal in Trafalgar Dock, with enhanced facilities to improve its services to the island.
Chief executive of the firm Kevin George said: "We're delighted that the plans have been approved.
"This is a major step for Red Funnel in terms of delivering the first part of the Solent Gateways scheme alongside the proposals for East Cowes, which are also being progressed."
Plans for the Waterfront include apartments, shops and a hotel, while more space may be created in the adjacent Mayflower Park for a new Spitfire statue, commemorating the fact that the aircraft was manufactured in the city.


