Detailed design work and a full business case are needed before a final decision, the council says.
The redevelopment is among a number of vacant shops facing a transformation in the city.
The Three Tuns is one of the public artworks being saved during Coventry's City Centre South project.
Councillors have voted in favour of demolishing Evesham's Riverside Shopping Centre.
The former Iceland Store on Charles Street in Hanley is being demolished over the next six weeks.
Two B-listed tenement buildings were destroyed in Pollokshields in November 2019 and April 2020.
A council outlines where homes and workplaces may be built over the next 17 years in a city.
The new owners say the business will be an important part of the town's regeneration.
The company behind the work in Northampton town centre says it might not be completed until 2027.
