A massive redevelopment of Arnotts in the centre of Dublin has been given the go-ahead by the planning authority.

An Bord Pleanála's decision means the €1bn project can commence on the site of the Arnotts and Penneys department stores.

The building work is expected to generate around 1,000 construction jobs.

And once completed, the scheme will create 5,000 new full-time jobs for the capital.

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The €700m Northern Quarter phase of the development will transform the area between Henry Street, Middle Abbey Street, Liffey Street and O'Connell Street.

The authority has granted permission on the agreement of 26 conditions, which include the preservation of protected buildings in close proximity to the development.

An Bord Pleanála had initially rejected plans for the project.

There were concerns over a 16-storey tower, which the planning body said would obstruct the Dublin skyline.

The firm behind the project has now agreed to ditch the height of the tower as well as reducing the number of car parking spaces in the complex.

The redevelopment includes a hotel, cafes and restaurants, around 50 shops and more than 170 apartments.

(PR/JM)