The former Odeon cinema and Paramount music venue, which opened in 1934, has been sold to developers who plan to convert the building on Renfield Street into a 10-storey office and retail block.
But the Art Deco facade and the foyer area of the building, which played host to stars such as Dusty Springfield, Roy Orbison and Cliff Richard in the 1960s, will be saved.
The work follows a deal between owners Duddingston House Properties, and developers Mountgrange and PRUPIM, who have bought most of the building.
The facade and the foyer area will be retained by Edinburgh-based Duddingston House Properties.
The company had planned to give the building a multi-million pound facelift, but the dire economic climate saw it scrap the plans.
The deal with Mountgrange and PRUPIM appears to put an end to hopes that the landmark building would return as an entertainment venue six years after the last film was shown in the cinema.
Mountgrange Real Estate Opportunity Fund and PRUPIM are set to make a speedy start on their plan to create 143,000 sq ft of Grade A office and retail space on the site.
The have appointed Sir Robert McAlpine, who has worked on the Commonwealth Sports Arena and the adjoining Sir Chris Hoy Velodrome in Glasgow, to design and build the development.
Demolition is expected to be completed by the end of the year, and the 10-storey building is expected to be completed by December 2014.
Nick Berry of Mountgrange Investment Management said: "We have identified Glasgow as a prime target for commercial investment and believe this provides an excellent opportunity to respond to the shortage of Grade A space in the heart of the city."
Councillor Gordon Matheson, leader of Glasgow City Council, said: "It is vital for Glasgow to have access to top class office space if we are to continue to attract new businesses and jobs. I am delighted this site is now to be regenerated."
In September, the Evening Times reported that Duddingston House Properties, Mountgrange and Prupim were close to concluding a £5m deal covering the bulk of the site.
Sir Robert McAlpine, It is constructing a new five-storey building for the Glasgow School of Art which will house studios, teaching facilities and exhibition space.