NHS Resolution has overturned decisions made by the North East and North Cumbria Integrated Care Board (NENC ICB) to stop the opening of two new pharmacies.
The appeals body's decision will allow Jiwa Pharm Ltd to open two new pharmacies in Heaton and Kenton.
Applications for new pharmacy contracts were refused by local NHS officials, despite concern over the dwindling number of pharmacies.
In the Heaton case, NHS Resolution ruled that while refusing the application, the NENC ICB had failed to give sufficient weight to the identified gap in services.
Newcastle City Council has welcomed the move, amid complaints that a shortage of services was forcing locals to travel long distances for their healthcare needs.
The area had witnessed numerous closures in recent years. Boots has closed down branches in Heaton, Jesmond, Byker, Cruddas Park and Kenton over the past two years, while a Lloyd's pharmacy shut its outlet in Heaton.
Another application for a new pharmacy at Cruddas Park, which was previously refused, is now under review.
The Council stated that Jiwa’s two pharmacies are expected to open within the next 12 months.