The new boathouse, which will replace the existing building on Foreshore Road, will be home to a new £2m Shannon class lifeboat.
The Royal National Lifeboat Institution (RNLI) said building work would begin in autumn and take a year to finish.
Plans were approved by Scarborough Borough Council's planning and development committee.
RNLI divisional operations manager Andrew Ashton said: "We're delighted that the plans have been approved today and this heralds an exciting new era in Scarborough RNLI's rich and long lifesaving history."
The lifeboat station will be funded from various RNLI sources including legacies, donations and fundraising activities.
The Shannon class lifeboat will replace Scarborough's current Mersey class lifeboat in 2016.
John Senior, Scarborough RNLI lifeboat operations manager, said: "While it will be a shame to say a fond farewell to our existing facilities, which have served us admirably over the decades, it's time to look to the future."
Plans for the lifeboat station were approved despite a number of objections from local residents who claimed the building would not "blend in with existing buildings", with one branding it a "monstrosity".
Plans for a new £3m lifeboat station in Scarborough have been approved by the town's council.