Plans for the scheme include a cinema, food and drink outlets, a hotel, and a car park, with the new leisure facilities connected by a new pedestrian bridge to the wider town centre.
If consent is granted and agreements are exchanged with the main anchor occupiers, it is anticipated that construction will begin in autumn 2021.
Forge Island was home to a Tesco supermarket and is located across the banks of the River Don from the former magistrates’ court, both of which were bought by the council.
Dan Needham, development director at Muse Developments, said: “We’re at the next stage on the journey to deliver an innovative and striking scheme in the heart of Rotherham that will benefit the town and the community for years to come.
“Forge Island will be a destination that will bring a family-friendly offer to the town, where people will be able to relax during their free time.
“Our collaboration with Rotherham Council is built on a shared vision, values, with the goal to deliver a truly transformational scheme, and we’re all moving in the same direction to bring that vision to life.”