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Balfour Beatty submitted the lowest tender and received the highest quality score for its £28m bid, which includes a commitment to create local employment opportunities.
The proposed new station building will occupy the site of the former concourse.
It has been designed to create a new landmark within the Central Waterfront development and also a new gateway into the city for rail passengers.
Features include a double height ground floor incorporating a passenger concourse, ticketing facilities along with a cafe/restaurant and retail space.
There are three additional floors above the facilities to accommodate a new mid-market hotel.
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A report to the policy and resources committee on 24 August will note that because of the project's importance to the city, its likely community benefits and the radical improvements it will make to the transport infrastructure, funding has been secured for it to go ahead despite the cost being more than £7m over the pre-tender estimate.
Ken Guild committee convener said: "We commissioned a report by project consultants Jacobs to find out why the cost was pushed above our original estimates and it notes that there were a number of complex factors that combined to account for the increase.
"Lack of competition in the marketplace combined with the current risk averse approach to rail related projects were key elements, however the council's new Capital Plan has identified funding for this vital project to go ahead.
"More than 120 construction jobs per year for the two years of the build; £11.6m of gross added value to the local economy; and knock on benefits to the local supply chain all add up to make the concourse project a key economic driver while it is being built.
"In addition when the new railway station concourse opens it will create jobs in the associated hotel and retail development."
Following councillors backing, the work is due to start in autumn and will take just over two years to complete.
(LM)
