Bushy’s Brewery will be moving its operations to Castletown.
Planning approval has been granted for a new tap room, restaurant and offices to be developed.
Castletown Commissioners confirmed that a planning application by the brewery to relocate its base to the Commissioners' Yard on Milner's Terrace was unanimously approved by the committee at its meeting this morning.
The local authority says the proposal will be subject to a petition to the Department of Infrastructure (DoI) in the near future in order for the plans to progress.
As well as the brewery and tap room, the restaurant will provide seating for 90 covers across two floors.
Bushy’s announced in 2022 that it planned to leave Santon and head to Castletown.
Castletown Town Commissioners previously said it had planned to sell the land and associated buildings to the brewer for £625,000 however, the deal is yet to be completed.
The local authority said: ‘The Commissioners are pleased to confirm that the application to relocate Bushys into our works yard was unanimously approved by the planning Committee at their meeting this morning.
‘The proposal will again be subject to a petition to the Department of Infrastructure in the near future in order to progress.’
A petition is the process by which a local authority seeks permission from the DoI for certain activities and financial dealings.
The move will see Bushy’s retain the existing buildings at the Castletown site, some of which date back to at least the 1860s.
Bushy's founder Martin Brunnschweiler previously said he was 'really excited' about the relocation plans and that he was delighted with the prospect of bringing brewing back to the ancient capital.
He told Media Isle of Man: ‘I think it’s a fantastic proposal for Castletown.'
The Manx brewery also recently announced that its popular Isle of Man TT village will be turning to the Villa Marina gardens for 2024..
Kicking off on Thursday May 30, the temporary venue will boast four bars as well as a diverse lineup of live musicians, food vendors, shops and the addition of a large screen for live race viewing.