Heritage Victoria has approved demolition of “outbuildings” behind the main iconic section.

The parts to be knocked over — including basic accommodation, staff recreation hall and a woodshed — were seen as an impediment to the chalet’s restoration and possible future development at the site.

The stunning facade, ballroom, entrance front accommodation rooms, dining room, main lounge and billiard room will be restored under the $7.5 million project.

A request to demolish art deco garages at the rear of the complex has been refused.

The chalet has been closed for more than seven years.

The state government intends to establish a day visitor centre and possibly a cafe and has extended the proposed lease offered on the property to up to 99 years.

Environment Minister Ryan Smith and Alpine mayor Peter Roper welcomed the approval.