Southwark Council approved the masterplan for the Heygate Estate and hailed the project as "the most significant milestone yet in the regeneration of this key part of Central London".
Developer Lend Lease will work with its regeneration partner Southwark Council to deliver the masterplan designed by architects at Make. It will be one of the largest new housing developments in zone 1 London and include around 2,500 homes.
"The development will deliver extensive new publicly accessible space comprising parks, squares, streets and gardens," said Lend Lease. "There will be new pedestrian and cycle paths that will create one of the best connected locations in London.
"Safety for local people is foremost, through the careful design of new streets and public spaces, to ensure a feeling of well-being and security. The development will deliver at least 4.53ha of open space and improved public realm."
Southwark Council leader Peter John said: "The approval is a watershed moment for the borough. We now have the opportunity to continue the transformation of the area as a place where people want to live, work, shop and relax."