The Winter Village is set to return to York Minster after city planners gave their approval.
York Minster sought to site six chalets south of the Minster from November 1 to January 13.
The plans are similar to previous markets on the Minster site, which will add to other Christmas markets in the city centre.
A report by council planning staff noted the Guildhall Planning Panel believed a better site could be found as the minster markets are becoming more regular.
The council’s conservation architect said the ‘cluttered positioning’ of the chalets would harm the setting of the Minster and should be refused.
The planners said the nature and design of the chalets would harm ‘heritage assets’ in the area, but they can be reversed.
Recommending approval, they added: “The proposals would also assist with ensuring the Minster is financially sustainable.”
When plans for the Winter Village were announced in August, the Minster said the market would help it recover from a financial hit caused by the pandemic and its lockdowns.
The application also said: “Benches would be provided for people to stop and dwell with low volume choral music/carols being played. The chalets will sell Christmas food, gluhwein and hot chocolate. There will be a dedicated chalet selling York Minster Christmas gifts as well as a ‘Best of Yorkshire produce’. One chalet will be available for use by local charities.”
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