Proposals to develop a new, modern shopping centre in the town were agreed by Knowsley’s planning committee.
The plans were submitted by Neptune Developments and centre on an Aldi supermarket and large and small individual shopping units.
They also include a new bus interchange facility, car parking and possibly a new pub or restaurant.
The retail development completes the £16 million regeneration of Halewood’s Raven Court site.
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The project began with the creation of the ground-breaking Halewood Centre that opened in January 2009 and brought together a range of Knowsley Council, NHS Knowsley and community services under one roof.
"It's fantastic news that the final part of this project has now been given the go ahead," said Cllr Dave Lonergan, Knowsley's Cabinet Member for Regeneration, Economy and Skills.
"A thriving shopping centre is crucial to the regeneration of Halewood. Local residents told us that they wanted an Aldi store so it’s great that this will be delivered.
"The developers have also had a lot of interest from national and local traders who want to be part of the new centre."
Nick Kavanagh, Knowsley's Executive Director for Regeneration, Economy and Skills said: "Work has already begun to clear the old Raven Court shopping centre and prepare the site for redevelopment.
"Building work is expected to begin in the New Year, which will create a vibrant shopping district for the Halewood community."
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