Simon Hubbard, corporate director for regeneration and planning at Hastings council said: "The town will gain a high quality cultural asset which will achieve a cultural-led regeneration of part of the seafront and provide the key for future improvement."
Cllr Jeremy Birch said: "This is a real opportunity for us in not just seeing a viable and exciting construction on The Stade but also being able to change the type of visitors to Hastings.
He said: "This could be life-changing for Old Town. At last we will see the culture and arts at the heart of regeneration."
Council leader Peter Pragnell said: "These are exciting times, not just for Old Town, but for the whole of the surrounding area.
"Jerwood is going to invest a lot of money in our town and we want it to fully benefit from it.
"We will work closely with the Jerwood Foundation, other organisations such as the Arts Council, the South East England Development Agency, the Hastings Foreshore Trust, and East Sussex County Council, and of course the local community, to do all we can to realise this vision."
