The development, anchored by discount retailer Aldi, will form a part of the transformation of the vacant site for the Snowhill area.
Consent has been secured for eight retail units, adjacent to Paragon Business Park. The units will total 46,600 sq ft, and include the Aldi store, five retail units and two drive-through outlets, one pre-let to McDonalds.
Kier Property, with GMI Property acting as development manager, submitted the planning for the development.
Tom Gilman, managing director of Kier Property (North), said: "Although this strategic site has a historic retail consent we are delighted to have secured a new planning permission to facilitate Aldi opening a new food store in Wakefield.
"We have strong interest in the remaining retail units and this scheme will attract more investment into the area and bring along with it new jobs for the locality."
Chris Gilman of GMI Property added: "We are delighted to be working with Kier on this scheme and this consent is a significant milestone in delivering this important mixed-use development.
“Plans for the next phase will be brought forward by Strata Homes, with planning expected to be submitted within the next few weeks.
"The designs complement the surrounding developments and make a much-needed contribution to the housing requirements of the Wakefield area."
Construction is expected to start in March this year with completion planned for Easter 2017.