Lloyds Bank left the 148-year-old Grade II-listed building last year and has relocated to a new branch in the nearby Mander Centre.

Wingate Associates Ltd will now sensitively transform the upper levels of the vacant four-storey building into 12 one-bedroom and 6 two-bedroom apartments.

The conversion of the former banking hall space on the ground floor to a café will make use of the 19th century 'Italianate' Italian Renaissance-inspired features including the grand entrance, etched windows, plinths and pillars.

Earlier this year, planning approval was also granted to convert another landmark building in the high street – the former Marks & Spencer – into apartments and high-quality retail units.

Councillor Stephen Simkins, City of Wolverhampton Council Leader, said: “This is exactly the type of scheme we want to see and demonstrates great confidence in Wolverhampton.

“This is an important site at the heart of our city centre and we look forward to it being sensitively and swiftly brought back into use.

“To ensure our city centre thrives we have undertaken major transformation through infrastructure and development schemes like the new transport Interchange, public realm improvements, Smithgate and Canalside South - all of which are encouraging further investment and development like this.”

Gary Hartland, Wingate Associates Ltd, said: “Wolverhampton is a city on the up and we are excited by the opportunity to sensitively bring this historic building back into use, while positively contributing to the city’s visitor offer.

“It will activate the ground floor, adding to the public amenity space in Queen Square, while supporting the city’s vision of being a vibrant, safe, attractive, and family-friendly city centre.

“The new apartments will enhance the city centre living provision and increase footfall to support businesses in the local economy.”