Aberdeenshire Council's Banff and Buchan Area Committee has approved a grant of £450,000 to rebuild the former Harley's Bowling Alley.
A substantial part of the structure, cladding, windows and the interior of the property were badly damaged by fire in September 2016.
Morrison Construction has been appointed to carry out the work which is set to begin in August and is expected to be complete by the end of the year.
Cllr Andy Kille, Aberdeenshire Council's Banff and Buchan Area Committee chair, said: "It is heartening to see this committee's decision to bring back this premises into use. Once the work is complete, this building will be a great new home for a business in Macduff, which will be a boost to the town and the local economy."
Committee vice chair, Cllr Michael Roy, said: "This decision shows the important role area committees play in helping ensure that regeneration and renewal takes place in the places they serve. I hope that the new business that uses this fantastic premises as its base really thrives."
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