"We took a space that was retail and we're making it into a space that's led by community activity and cultural activity, and I think that's really exciting, and I think that's going to add value to the future of Coventry," said Councillor David Welsh.
The local authority said the venue would be used to house about 8,000 works from the Arts Council Collection and more than 8,500 works from The British Council Collection.
It could also display items from the transport museum and other museum collections currently at Whitefriars Monastery.
However, with so much space on offer - 53,904 sq m (580,218 sq ft) - it is unclear how else it could be used.
Local film director Debbie Isitt, who was behind the Nativity series of movies, among others, described it as a "brilliant space" and likened it to "a studio lot from LA".
"It's a huge empty space. It's got full of potential and we know that film and television production is on the up in this country," she said.
