Costa Coffee has been granted permission by Fenland Council to turn the former O2 shop in the Horsefair into a coffee house.
The unit will be extended on the ground floor up to the columns and the first floor will also form part of the cafe. The second floor will be retained for office use.
Twelve part-time jobs will be created once Costa opens, which is anticipated to be in early 2014.
A spokesperson from New River Retail said: “We are delighted that the planning application submitted in July to transform the Horsefair’s former O2 shop into a Costa Coffee has been successful. The Horsefair’s shop will be a fantastic addition to the centre’s current mix of retailers and will also be a boost for town centre retail.”