The Happy Wanderer pub site on Green Lanes has been subject to arson attacks since the pub closed in 2017 due to poor trade.
City of Wolverhampton Council planners have now given the owner of the property, Kam Sanghera, permission to flatten it after it was deemed dangerous by building control.
The disused council owned garages to the rear of the pub have been subject to anti social behaviour and will also be demolished.
A planning application has been submitted by the owner to build 33 apartments on the site with dedicated parking. If approved, the development would see 11, 1 bedroom and 22, 2 bedroom flats built across 3 buildings.
Cabinet Member for City Assets and Housing, Councillor Bhupinder Gakhal, said: “This positive action will make the site safe and remove the risk of further anti social behaviour, making a big difference to the local community in Bilston.
“The development of the site, subject to planning approval, will make a huge difference to the street scene in the area.
“Furthermore, there is the potential to deliver much needed new homes, boosting the local economy.”
Bilston North ward councillor and Cabinet Member for Adults, Councillor Linda Leach, added: “A lot of hard work has gone into getting to this point and I am delighted to see demolition works starting.
“This is the first step in transforming this troublesome site and creating something that will provide a real uplift for neighbouring residents.”