Plans to scale down a development on five acres of land in Cheltenham have been approved by the borough council's cabinet.
The plans for North Place and Portland Street car park sites were put on hold due to the recession.
The cabinet has now agreed changes including reducing the amount of affordable housing that can be built from 50% to 40%.
The full council will have final say on the plans on 13 December.
Amended plans would also mean more flexibility in the way the land can be developed.
The original plans, announced in 2008, included a new library, flats, homes and retail space.
A public consultation on the proposed changes was held between 23 August and 1 October.
The cabinet report recommends the changes go ahead to reflect current market conditions.