The council's community, recreation and culture committee unanimously agreed on Friday that the hall should be fully restored and that a performing arts precinct around it should include a new Court Theatre and homes for the Music Centre of Christchurch and the Christchurch Symphony Orchestra.
The council has budgeted a total of $158m for the projects. The restoration of the town hall, which was designed by Myles Warren and opened in 1972, is expected to cost $127.5m. The committee ring-fencing $30m for the music centre, theatre and CSO buildings.
It will make recommendations to the full council on August 29.
"This is about retaining an iconic civic building that is world famous for its architecture and acoustics," committee chair Yani Johanson said.
On Friday, a group opposing the demolition of ChristChurch Cathedral said it is going to the Supreme Court in a last effort to restore the quake-damaged landmark.
The Anglican Church, which owns the cathedral, has built a temporary cathedral made from cardboard tubes in another location. It has plans to build a long-term replacement.
