West Lindsey District Council approved plans to demolish a Gainsborough pub in order to make way for 14 new flats.
Proposals submitted to the authority would see the Ropery Inn on Ropery Road in the town flattened.
Developer Brijesh Patel Esq plans to build 14 new apartments on the site.
The council said the proposal will help to give life back to an “increasingly unsightly and damaged” site.
It comes as the owner of the Ropery Inn struggled to find a tenant for the pub, which has been empty for more than two years.
In their plans, the developer said the new plan will be a “large investment” in the area and will help to provide “modern living quarters”.
A proposal for 16 new apartments on the site was submitted by the developer in March 2018, but was withdrawn.