Planning director Clive Dutton said the rebuild was way overdue.
"This is a principle gateway to the city and at the moment it certainly doesn't give the best impression to visitors."
A shimmering metallic terminal complete with public square and swanky entrance is set to replace the dingy, old brick coach station, which lies just a few hundred yards from the sparkling Bullring shopping centre.
The bus station designers, MAKE, hope the improved terminus, which could open in 2008, will act as a catalyst for further regeneration in the area.
Coaches will run from a former Volkswagen car dealership across the road while construction work is under way over the next three years.
Up to 350 coaches a day will be switched to the former showroom in Oxford Street.
It will be converted into a temporary terminal while Digbeth's notorious city coach station is redeveloped - a process not expected to be completed until mid 2008.
The temporary station, which will operate around the clock, is opposite the existing one.
Planners have proposed a ban on late night public announcements at Digbeth and coach reversing alarms.
