The site next to the palace has been derelict for two decades
A planned development on land opposite Hampton Court Palace in Surrey has been approved by councillors.
Elmbridge Council's planning committee considered two sets of plans from the developer, Gladedale, for the derelict Jolly Boatman site.
A Georgian-style "classical" scheme was approved, but a "boathouse" scheme with timber weatherboarding was ruled out.
The application, which was opposed by the Historic Royal Palaces, has now been referred to the full council.
Elmbridge Council said the plans would be considered at an extraordinary meeting of the full council on a date to be confirmed as soon as possible.
The Historic Royal Palaces had said the plan was "huge, urban and inappropriate".
The charity asked the government to call the plans in for consideration by the Secretary of State, but the request was rejected.
Developers Gladedale defended the scheme and said it had been "sensitively designed".
A Gladedale spokeswoman previously said the site had been derelict for more than 20 years, and was voted one of Britain's worst wasted spaces in 2003.
Papers submitted to an earlier meeting in October said the "classical" and "boathouse" plans, which had different designers, were "effectively identical".
A report said both applications were prepared by architects with "a track record of designing excellent buildings in historic settings".
But English Heritage had been unable to support the appearance of the "boathouse" scheme.
The report said English Heritage preferred the brick and stone in the "classical" scheme to the white weatherboarding in the "boathouse" scheme.