Legal restrictions will be removed to push ahead with Dudley Hippodrome plans

The Kennedy family, which ran the historic theatre for more than 20 years, placed a covenant on two adjacent buildings restricting the future use of the site.

It was enforced on the art-deco theatre and the neighbouring Plaza cinema – stopping the sites from being used for other than entertainment, housing or retail.

But now Dudley Council chiefs have now signed a formal document which paves the way for the covenant to be overturned, allowing the buildings to be demolished.

Councillor Simon Phipps, cabinet member for regeneration and enterprise, said: "These buildings are key to our plans to create a world-class higher education facility on that site which will create jobs and training opportunities. The latest decision will allow us to press ahead at pace and add to the rolling £1billlion worth of regeneration activity we have in the borough."

Planning permission has already been granted for the controversial scheme and despite the efforts of campaigners, the historic venue looks certain to be knocked down.

Dudley Hippodrome Development Trust previously argued they do not oppose the regeneration of Dudley, but that the hippodrome should form a "major part" of it.

The £25 million nursing college will be run by Worcester University on the Castle Hill site which also includes the former JB's nightclub and martial arts centre.

The project, which is a partnership between the council, Dudley College of Technology, University of Worcester has been overseen by the Dudley Towns Fund Board.

The higher education facility will include a university facility and will provide university-level courses for the health sector. It is being funded through a £25m award from the Government's Towns Fund.

Previously, footage was released showing the Hippodrome as a shell of its former self.

TheSecretVault – which has 44,000 subscribers – filmed inside of the historic art-deco theatre which will be demolished to make way for an education campus.