Plans to build homes and a sports arena on the site of the Millennium Dome have been given the go-ahead.
Over 10,000 homes will be built
London mayor Ken Livingstone lifted his threat to block plans for the south-east London site after the developer agreed to include more affordable homes.
He initially asked Meridian Delta Ltd to increase the number of low-cost homes to 5,000, but has agreed to settle for 4,100 - nearly double the original amount.
Now a 26,000-seater arena for sporting and entertainment events and more than 10,000 homes will be built on the Greenwich Peninsula.
It is hoped the plans will boost London's Olympic bid and will mean more homes for nurses, teachers and police officers.
This will help meet the capital's pressing need for more affordable homes
The redevelopment is also expected to create up to 24,000 new jobs over the next 20 years.
Mr Livingstone described the plans as a major development in one of London's "vital regeneration areas."
He said: "Holding out for more affordable homes means that we will give east London just the vibrant new communities it is crying out for.
"This will also help meet the capital's pressing need for more affordable homes."
Developers are planning a complete renewal of the Greenwich Peninsula, helped by a £15.4m boost to public transport.
There are also plans for a new school, a hotel, new offices, and shops on the site.
Meridian Delta director Bert Martin said he was "very grateful" the mayor had clearly stated his position.
And a spokesman for Greenwich Council, which has already granted planning permission for the development, said they were "relieved" plans could now go ahead.
Council leader Chris Roberts added: "This does not just mean affordable housing.
"It is about jobs, transport, educational and health facilities, open spaces and all the things that go to make communities sustainable.
"Greenwich Council will now negotiate these benefits for the benefit of local residents."
It is hoped work will start next year.
The Dome has been empty since it shut on the last day of 2000, after failing to attract the £12m visitors expected.