Hammersmith and Fulham Council has agreed to push ahead with an £8bn plan to redevelop the area around Earls Court.
The scheme would involve 57 acres of land, including the Earls Court Exhibition Centres, Lillie Bridge London Underground Depot and the West Kensington and Gibbs Green housing estates.
The council says it will be the biggest new project in the capital since Stratford was transformed by the Olympics, and that it will inject billions of pounds worth of private investment into the area.
Thousands of new homes will be created, along with shops, offices, leisure facilities, public open spaces, a new school, and new transport links.
Hammersmith & Fulham Council Leader, Cllr Nicholas Botterill, said:
"Britain needs more homes and more jobs and this is just the kind of privately-funded construction, on a brownfield site, that can lift the UK out of recession. Growth is the engine of economic opportunity and this country needs many more visionary projects like this. "This is a once in a lifetime chance for the residents of West Kensington and Earls Court to benefit from a massive investment in their own area. All our residents can now look forward to a new era of prosperity and opportunity, with new homes and jobs on offer, and the council will be there to help every step of the way."
Kensington and Chelsea Council and the Mayor's office have also got to approve the plans before work can get underway.