London mayor Ken Livingstone has given the green light to Arup Associates' and Fletcher Priest Architects' Stratford City, one of the largest ever projects planned for the capital.
The £3.5 billion scheme in east London will provide up to 5,000 new homes - 35 per cent of which will be affordable - and create a huge new office and retail centre in the Thames Gateway.
Stratford City will be built on a massive site of derelict rail lands around Stratford Station.
It is next to the main London Olympic Games site and would play a significant role in providing much of the athletes' accommodation if London hosts the Games in 2012.
'Stratford City will transform this area of east London into a thriving new urban community, ' Livingston said. 'It will provide a massive boost to the regeneration of the Thames Gateway, capitalising on the Channel Tunnel Rail Link to make Stratford London's gateway to Europe.'