John Lewis has confirmed it will occupy a new store to be built by Network Rail alongside the new Birmingham New Street redevelopment on a site on the south side of the station.
Confirmation that the retailer would make The Pallasades the location for its new city centre store was welcomed by the partners in the station redevelopment.
"Network Rail is helping to rebuild Birmingham by transforming New Street," said its chief executive David Higgins.
"The project is about much more than simply redeveloping the station. Today's deal is a further sign that our plans are critical to the long term success of the city and will create new jobs and help stimulate economic growth. These exciting changes are happening as a direct result of the investment being made to improve Birmingham's transport infrastructure."
Birmingham City Council leader Mike Whitby said it would enhance the city's reputation as a place to do business.
"We have been working to secure their presence in the city for over two years now, and to see the fruits of our negotiation borne out today is phenomenal," he said.
Advantage West Midlands chief executive Mick Laverty said the announcement was a massive vote of confidence for the economic future of Birmingham and the West Midlands.
"All the hard work, commitment and determination of the project partners involved with the Birmingham Gateway Project at New Street have definitely helped secure a major business success," he said.
"AWM's £100m investment in Gateway remains the biggest single investment of any RDA in the country and I am delighted it is helping to create a legacy from which the city and West Midlands region will benefit in years to come."
