Aberdeen's Cafe 52 will be allowed to keep its Shepherd's Hut on the historic Green until at least early 2026.
Planning officers have said the structure "does not significantly detract from the visual amenity of the area".
But they maintain the permission remains temporary, cautioning that similar approval may not be granted again if its condition worsens.
The Press & Journal says Cafe 52 was first given permission for the hut in 2016, and it was renewed in 2019.
But that came with a warning that the consent was to be strictly temporary.
Council planning chiefs said it should be taken down by November 2022 to protect the character of the traditional area, believed to be the early nucleus of medieval Aberdeen.
However, late last year, owner Steve Bothwell applied to keep the hut in place as the business recovers from the pandemic.
Earlier this month, 20 jobs at the Dutch Mill in Aberdeen's Queens Road were saved when councillors granted permission to keep a replacement marquee up for at least three more years.
The hotel and bar erected the original structure in 2021, as Covid restrictions hit hospitality.
But the council ordered it to be removed, saying the large white canopy looked out of place in the traditional area.
In a bid to find a compromise, Dutch Mill bosses offered to put up a smaller grey marquee designed to fit in more. They also pledged to set it a few feet back from the street and shield it with trees.
The business had issued warnings of "considerable" redundancies if the proposal was rejected.