The regeneration of part of Liverpool city centre is set to go ahead after the Court of Appeal rejected a legal challenge from conservationists.
The £39m scheme will see the eastern side of Lime Street redeveloped, with a range of commercial, retail and leisure premises eventually occupying the site.
Judges rejected an application by SAVE Britain's Heritage to retain the facade of the derelict Futurist Cinema.
Campaigners say they may now mount a further legal challenge.
SAVE claimed Liverpool City Council had breached planning guidance by failing to notify the Department for Culture, Media and Sport and UNESCO's World Heritage Committee of the regeneration plans.
But Lord Justice Sales and Lord Justice Lindblom agreed with a High Court ruling in January that the council had acted properly.
Liverpool City Council said the derelict 104-year-old cinema was beyond repair.
SAVE said the demolition and replacement buildings were "inappropriate and harmful".
The group added it was "currently assessing our options for appealing the decision in the Supreme Court".
Liverpool Mayor Joe Anderson said: "We must now crack on as soon as possible with enabling the developers to deliver on their vision for the area."
The scheme, to be built by Neptune Developments, secured planning approval in September 2015.