Captain Flint’s has secured council permission to begin its transition into apartments.
Ian Cunynghame, owner of the town centre pub, applied for planning permission and listed building consent at the end of 2019 to redevelop Flint’s as apartments for the “short stay rental market”.
Council planners have now approved those applications, paving the way for redevelopment work to begin on the town centre bar.
The ground floor D. G. Leslie shop will remain open as part of any redevelopment.
Mr Cunynghame said in October that he wanted to “explore other options” for the building.
Locals reacted with shock on social media to October’s news that Flint’s could soon be set to close, with one commenter calling it “another nail in the coffin” for Lerwick’s town centre.
Others reflected on past gigs at the venue, and asked where up and coming local artists would be able to play in the event of the pub’s closure.
The plans would see the first-floor, which currently hosts the main bar, large flat-screen TVs and a space for bands to perform, transformed into two apartments with a bedroom, living room and bathroom in each.
The second floor, with two pool tables, a jukebox and smaller bar in its current situation, would become another apartment and three en-suite bedrooms instead.