The scheme will provide 119 flats and houses along with 960m 2of commercial space for developer Family Mosaic, one of the UK's largest providers of social housing.
The practice has been working on the project since 2003, and the planning approval only came after a long debate with Hackney Council, because of the site's close proximity to the London 2012 Olympics area.
It is Davy Smith's third scheme in a row to go to public inquiry in the last year - and the third the practice has won.
According to the firm, the development was praised by the planning inspector for being a 'carefully thought out design'.
The site will include two large 'multi-family' houses to accommodate some of those displaced by the relocation from the Olympics site.
The scheme offers family houses and flats, set around a central landscaped square, and includes two towers of 10 and 12 storeys clad in blue brick.
The two towers also display recessed and glazed balconies, which spiral round the corners of the towers.
The project is expected to start on site early in 2007.