The Rookery Tavern site on Wood Street has been subject to arson attacks, vandalism and fly tipping since the pub closed almost 7 years ago.
The current owner, Mohammed Adeel, took over the site in October 2021 and has moved quickly to start demolition after working closely with the council to ensure he meets the necessary building regulations.
A planning application has also been submitted by the owner to build 24 apartments, with dedicated parking, on the site.
City of Wolverhampton Council Deputy Chief Executive, Mark Taylor, said: “There were concerns about safety to public health and it has been good to work with a responsible and committed developer to make the site safe and remove the risk of further anti social behaviour.
“The development of the site, subject to planning approval, will make a huge and positive difference to the street scene and the local community.
“Furthermore, there is the potential to deliver much needed new homes, creating jobs and boosting the local economy.
“It is the first step in transforming this troublesome site and creating something that will provide a real uplift for neighbouring residents.”