Contracts have been exchanged to build the new government headquarters on the site of Cyril Le Marquand House.
The developers will now prepare a planning application.
The Chief Minister, Senator John Le Fondré, has toured the old building before demolition work begins.
In a video published on the government's social media channels, he says the project has many benefits:
"It's going to free up much-needed space, mainly in St Helier, for housing or other purposes. It also means most services will then be in one place, and therefore much easier to access.
"So as well as reducing the government's literal footprint in town, it's also going to reduce our carbon footprint - being built to a higher environmental standard and helping us to environmental commitments.
Government of Jersey video
"The estimated financial benefits are also impressive, with revenue savings worth around £7million a year."
The Scrutiny Liaison Committee wanted to delay approval of the plans so they could be reviewed first, but that was rejected.
The building will be occupied for up to three years, during which there'll be an option to buy it at a pre-agreed price.
If that isn't taken, the government will enter into a 22-year lease instead.

New safety measures at Victoria Marine Lake following serious incident
Normans backs Channel 103 celebration of outstanding customer service
Police investigating crash near rugby club
Police chief praises 'positive and good-humoured' football fans
Channel Islands poised for third heatwave of the year
Two dads running 50km to get young stars to Dance World Cup final
Jersey told to avoid Victoria Marine Lake after child pulled through seawall
Jersey pubs can stay open later for England vs Mexico