Olympia Wellbeing Academy, supported by CODA Bespoke, submitted plans to Sheffield City Council earlier this year for the former Adelphi Cinema on Vicarage Road in Attercliffe.
The building opened in 1920 as a picture house and has also previously been used as a bingo hall and nightclub. It was most recently used as a music teaching facility, which closed in 2006.
The new plans cover the conversion of the ground floor as an educational facility involving mentoring through sports and fitness.
The existing dance floor will be used as a multi-functional exercise area, with the area where the floor is raised, and stores to be split into a cardio area and resistance and weights space. The kitchen would remain in place.
The council has now granted planning permission, subject to conditions, under delegated powers.
CODA Bespoke director Abel Hinchliffe said: "We are delighted that Sheffield Council has approved our plans for this historic Attercliffe building.
"This was not a typical CODA Bespoke project but it is one that we were very excited about as we are passionate about preserving our city's heritage. We are so pleased that a building that managed to survive many decades of change will now be preserved for future generations.
"It's a great example of how a building from the past can be given fresh life - though the original builders and owners might be very surprised to see how the property has had to adapt to survive."