York Brewery was congratulated on its success by councillors before being granted planning permission to open its first pub.
Coun Martin Brumby, chairman of the planning and transport sub-committee, offered his congratulations to managing director Tony Thomson for the way he runs his business, before the proposal was approved.
The Toft Green business had applied to City of York Council to turn the empty premises at 27 Colliergate into The Last Drop Inn, a traditional-style English pub.
Mr Thomson, who was "absolutely delighted" by the decision, said he felt the need to open his own pub after it became harder to find other outlets for his range of beers.
"We produce six draught beers," he said, "and only two of them are available in York.
"There are too many pubs in this city run by big breweries who are not allowed to stock our beer.
"Pubs have even stopped stocking our beer because we are selling so well and making their brewery's own brand look bad."
The brewery has been looking for suitable premises for months with the location having to fit in with the police and City of York Council's licensing strategy.
The Colliergate premises, next door to Barnitts, used to be the offices of Langleys Solicitors. Langleys still owns the freehold and would lease the property to York Brewery.
It is a 17th century, grade II listed building and the conversion would see the exposure of some of the original features previously hidden by plasterboard.
The Last Drop Inn, named after the brewery's Dick Turpin-themed winter beer, would boast a central bar, three seating areas and a patio.
Mr Thomson said: "It will be a traditional alehouse, selling our full range of beers plus lagers, Guinness and so on."
He said the council and police have been supporting the venture, which he hope will open just before the summer.
Coun Janet Looker also praised the drinks produced at the brewery, adding: "I'm not a big beer person, but I have to admit it's not bad."
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