A much-loved Stoke-on-Trent church which has stood derelict in the centre of Hanley for the past 20 years is set to receive a new lease of life after the Diocese of Lichfield and the Church Commissioners agreed to sell the building to a consortium which includes one of the country's leading church restoration specialists.

The consortium Church Converts, which includes Linford-Bridgeman amongst its members, will take over the former Saint John's Church in Hanley and convert it to a restaurant.

The bid was one of three received by the Diocese of Lichfield following a fresh and final attempt to market the building last November. The diocese admitted that it was close to seeking a demolition order for the Grade II* listed building if no suitable use could be found.

Architect Derek Latham of Church Converts has proposed that the historic painted east-end windows are moved to form a striking focal point within the building. This will open up the building so the interior can be seen from the street and also ensure the historic features are protected for years to come.

Last month a group comprising of representatives from the Diocese of Lichfield, the Church Commissioners and Stoke City Council convened in Stoke Minster to receive three high quality presentations from shortlisted candidates. The Church Commissioner's special projects manager for the pastoral and closed churches department, Alan Guthrie-Jones, said the group were unanimous in their recommendation to accept the Church Converts bid.

The Ven John Hall, Archdeacon of Salop, is responsible for all redundant churches in the Diocese of Lichfield.

He said: "The proposal from Church Converts will see the building restored to its former glory. Linford is a company with a strong track record for the quality of its craftsmanship and expertise in restoring architecturally important buildings. From a conservation perspective, Church Converts' fully funded plans to convert the building to a restaurant will see continued public access and very limited structural change to the building.

"This fitted in very well with the diocese's criteria to find a long term sustainable use for the building and the various representatives were unanimous in their choice."

The proposals have been considered and accepted in principal by the two statutory bodies responsible for redundant churches - the Diocese of Lichfield's Closed Churches Uses Committee and the Church Commissioners' Church Buildings (Uses and Disposals) Committee.

A draft scheme will now be published for public consultation and Church Converts will apply for planning permission and listed building consent.

John Hall added: "For many years St John's Church has stood empty while around it Hanley has been undergoing a transformation. It's good to know that St Johns will now serve as a symbol of the continuing renewal in the City and will be open for all the people of north Staffordshire to enjoy, admire, and - above all - use."

Simon Linford, speaking for Church Converts, said: "Church Converts is delighted to have the opportunity to bring this building back to life. With a combination of high quality architecture and craftsmanship, St John's can become a focal point of the community once again. We are looking forward to getting started."