Sunderland City Council and Gentoo will fund the construction of a new car park in Lakeside.
Lack of spaces around the Lakeside tower blocks has led to worsening parking problems, with the police issuing tickets for illegal and obstructive parking.
But councillors agreed to shell out £10,600 to build 18 new parking spaces behind the existing garages at a meeting of the West Sunderland Area Committee today.
The car park is expected to cost £21,200 in total and will be built on land owned by landlord Gentoo, which will provide the other half of the costs.
The proposal still needs to be given full planning permission before building work can start.#####