The long-awaited extension of Kingsgate could get the go-ahead next week.
The £14.4m scheme is expected to be given the green light by Kirklees councillors next Thursday.
Planning officials have recommended councillors on the Strategic Planning Committee give it the thumbs up.
They say the scheme – which will create 259 jobs – will boost the town centre economy by £7.7m per year.
Officials have also negotiated £185,000 from the developer WD Huddersfield Ltd for work to improve Cross Church Street. A further £40,000 has been agreed to provide some form of public art.
The plan would see two Grade II listed shops on Cross Church Street annexed and partially demolished to form the new entrance – one of which is currently Chicken Hut fast food restaurant – together with Fleece Yard, Sun Inn Yard and White Lion Yard. But planning officials say the heritage assets would not be significantly harmed.
They have also agreed some changes to the design of the extension, including a lower roof height, the use of Yorkshire stone, a reduction in the scale of demolition of 20-22 Cross Church Street and a more attractive entrance.
The proposal to expand Kingsgate was first mooted in 2007 but has stalled amid the economic crisis and planning issues with the neighbouring former Palace Theatre.