Construction of the massive scheme was being held up by a lone activist who argued the scheme would cause serious harm to the capital’s heritage.

The decision removes the last barrier to work getting underway on the project, which was approved by Communities Secretary Eric Pickles last June.

A spokesperson for Braeburn Estates, the joint venture between developers Canary Wharf Group and Qatari Diar, said: “We are pleased that the appeal against our proposed redevelopment of the Shell Centre has been dismissed.

“It had already been through an exhaustive planning process and we now look forward to commencing works on site in the near future and, in so doing, to bringing many benefits and much regeneration to this important part of London.”

Demolition contractor McGee is understood to have picked up part of the enabling works for the large scheme, which will involve demolition of several buildings on the site.

Canary Wharf Group is construction manager on the project and joint development manager with Qatari Diar.

The 27-storey Shell Centre Tower will remain the centrepiece of the new site, and will continue to be owned and occupied by Shell.

It will be complemented by eight new buildings, one of which will incorporate a further 245,000 sq ft of new offices and trading floors for Shell, enabling all of their 4,000 London-based staff to be located together on the South Bank for the first time.

Around 800,000 sq ft of office space, including the Shell Centre Tower, along with around 80,000 sq ft new retail units, restaurants and cafés, will be accompanied by up to 877 new homes.

The construction, which will run over a six-year period, will employ an average of 700 workers on-site rising to 1,630 at the peak of work.