The £45 million Aquarena redevelopment will go ahead after the government declined opponents' request to intervene.
The 15-storey tower had been granted planning consent but campaigners including West Worthing MP Sir Peter Bottomley had called on local government minister Sajid Javid to intervene.
But Worthing Borough Council have confirmed this morning that the controversial proposals, which were met with more than 1,000 objectors and a petition of 2,000 signatures, will go ahead after the minister decided against "calling in" the decision.
The borough council said the redevelopment of the site represented "a significant investment" worth £15 million to the town and transforming a derelict site into "a thriving community" of 141 homes, businesses and leisure opportunities.
The authority will now proceed to grant planning permission following the completion of a legal agreement securing 42 affordable apartments.
The scheme will take three years to complete.
Developers Roffey Homes said the firm would drop its appeal on their proposals for a 21-storey tower, due to be heard this summer, once planning permission had been issued.
Councillor Bryan Turner, Worthing Borough Council’s executive member for regeneration, says: “I am delighted that the secretary of state has decided not to intervene in the determination of application for the redevelopment of the Aquarena site.
"This decision is fully in line with the government's localism agenda which seeks to ensure that planning decisions are made at the local level and to only intervene where there are planning issues of more than local importance.
“The council will now proceed to issue the planning permission and hopes to complete the sale of the site as soon as possible to enable this important regeneration scheme to be built.”
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