Members of Sheffield City Council's planning and highways committee have approved an application to use the site of the former Zion Congregational Church, in Lawrence Street, Attercliffe, into a car sales and storage site.
The site has been derelict since a fire in the 1980s, and borders a graveyard which is currently being restored by a voluntary group.
"The site has remained undeveloped since the 1980s prior to which it was the site of Zion Chapel with adjoining churchyard. Since this time the site has become overgrown and unsightly," the planning report states.
"The applicant has cleared the site and allowed access across his land to the adjoining churchyard which is undergoing restoration."
The application was approved with conditions when the committee met on Tuesday, May 1.