Formal approval for the Compulsory Purchase Order and the related Stopping Up Order means work is now scheduled to begin on the main site at the beginning of next year.
The orders were granted despite objections from 28 local retailers and landlord Aberdeen Property Investors.
On completion, Grand Arcade will include a larger store for the John Lewis Partnership on St Andrew's Street, 50 high-quality retail outlets on two levels, a multi-storey car park, a magistrates court and a redeveloped central library.
A glass-canopied walkway through Grand Arcade will link into the existing Lion Yard shopping centre. Preliminary works have already begun along Downing Street and St Andrew's Street in the centre of the city.
After almost a decade of planning wrangles, the development team - now consisting of Grosvenor and Universities' Superannuation Scheme - was granted planning permission for the development this year.
CB Richard Ellis acted on behalf of Cambridge City Council.
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