A 26-storey apartment tower will replace a 150-year-old pub in Melbourne’s CBD.

Designed by DKO Architecture, the proposed $15 million project will sit at the site of the Great Western Hotel, on the corner of King and Little Bourke streets.

Following revised plans after the first involved demolishing the entire building, the new design will retain the façade and some internal features of the 1864-built pub.

“Given the building did not have heritage protection we have been able to negotiate a terrific outcome that will preserve the building facade, some ground-level heritage features and a street-facing commercial operation,’’ City of Melbourne planning chairman Nick Reece told the Herald Sun.

“It’s a win-win result. The developer gets a building with distinctive heritage character and future generations of Melburnians can hopefully still enjoy a pot and a good meal on the site the Great Western Hotel.”

The development will feature retail, dining and office on the bottom three floors, while 64 apartments – both one-bedroom and two-bedroom – will occupy the remaining levels. There will only be four car spaces, and 18 for bicycles.

Melbourne City Council are set to approve the project on Tuesday.