The state government has confirmed The Store on Hunter Street is on borrowed time.
Despite being heritage listed, the building will be completely demolished to make way for the Newcastle Bus Interchange.
The site will also be turned into a high-rise apartment block, featuring commercial and retail space.
There had been talk the facade would remain, but the government today announced new measures aimed at conserving the history of the building, including the creation of a "heritage reference group."
Micheal Cassel from Revitalising Newcastle says the new space will recognise and reflect The Store's history.
"The heritgae of the site isn't really represented in just the facade, there needs to be a lot more effort put in," he said.
Demolition won't start for at least six months.