The co-operation agreement has follows years of wrangling about the controversial Ian Ritchie-designed scheme for eight towers – nicknamed ‘daleks’ – on the prime riverside site.

Now the new designs by Squire & Partners have been put on display for local residents to have their say.

Berkeley Homes was unable to build the scheme in full because the council owns half the 1.6- hectare plot.

But the council has now agreed to sell its share of the land to One Tower Bridge Partnership, a 50/50 joint venture between the local authority and Berkeley.

The scheme will comprise 356 private homes, 46 affordable homes on an adjacent site, plus a cultural space to be used for performance or as a gallery.

A planning application has been submitted to the council.