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Serbia's legislative body has approved a law that sets the stage for a contentious development project led by US President Donald Trump's son-in-law Jared Kushner in the capital.

His firm Affinity Partners has aimed to build a premium hotel and residential project on the premises of the former Yugoslav Army central command.

The ruined building, which was targeted by NATO forces in 1999 throughout its campaign to halt Serbia's military operation in Kosovo, holds significant value to many who consider it as a reminder and representation of ongoing opposition to the defense organization.

Serbia's Head of State Aleksandar Vucic, who has pursued strong relations with the former president, has endorsed the plans in the face of demonstrations and legal disputes.

In the past year, the Serbian authorities revoked the structure of its conservation classification and approved a extended contract with the developer's company, which had set out designs for a $500m development.

The ruling triggered protests and resulted in an inquiry into whether a Serbian official had manipulated papers used in the method to alter the property's status.

Through a interview in June, President Aleksandar Vucic supported the plan, saying "it's crucial to transcend the burden from 1999".

He added: "We are ready to build improved connections with the America – I consider that is extremely crucial for this country."

The delayed approval procedure came to a head on Friday when the president's faction – which has a controlling in the assembly – pushed ahead with a specific vote on clearing the location and prevailed.

Opposition politicians have described the outcome illegal, including Aleksandar Jovanovic, who termed it as a "crime", and declared the significant building would be exchanged with "gaming establishments and spas".

Meanwhile, liberal parliament member Marinika Tepic commented the authorities was compromising the state's past "to satisfy Trump".

The approval of the legislation has additionally been challenged by architectural professionals, and comes following an anti-corruption group, an integrity organisation, voiced concerns about government-supported projects.

According to national news accounts before his first presidential run, the former president in the past explored building a hotel in Belgrade.

In March, the developer stated journalists he was not aware of his father-in-law's claimed previous consideration.

The resolution to enable progress for the project occurs as Vucic's administration attempts to maintain favorable connections with each of Washington and Russia.

The nation has been impacted by both Trump's economic policies and sanctions on Russian investments in the country, including on its sole fuel processing plant, the majority Russian Federation-held Nafna Industrika Srbije (NIS).