Work on clearing the land at the Merchant City, which has been lying derelict for years, has been completed ahead of schedule.
In 2002, Selfridges bought the Argyle Street site that had previously been occupied for many years by Goldbergs and latterly Weisfelds.
But the company's plans to build a new store have been put on hold and the area had become rundown.
Selfridges has in the past received two offers for the large site, which is bounded by Trongate, Wilson Street, Brunswick Street and Candleriggs but refused to sell.
After discussions with the city council it has agreed the first phase of redevelopment work will result in the area being transformed into an event space.
It is possible it will be the base for pop-up shops and other attractions before and during the Commonwealth Games next year.
It is understood the second phase of work will result in a commercial, leisure and residential development.
A city council spokesman said: "The council is in discussion with Selfridges and its agents about both the short-term use of the space and the long-term development plans."
Local shopkeepers have complained for more than a decade that the boarded up site impacts on the number of visitors to the area.
City council leader Gordon Matheson said: "We can now look forward to the development of one of the very few remaining vacant spaces in the Merchant City, one of the city's greatest success stories over the past 15 years."