Plans drawn up by the Real Estate Opportunities company could see the creation of 25,000 jobs and construction of 3,400 homes.
Following the mayor’s decision, the application will be considered by the secretary of state at the Department for Communities and Local Government.
Should the ambitious urban regeneration plan get off the ground, it will create a huge complex of 1.7m sq ft of offices and 1,5m sq ft of shops and leisure facilities, in addition to releasing £200m in funding for a two-station extension to the Northern Underground Line.
REO is still seeking a financial partner for the 10m sq ft development and said it aims to unveil either an individual or a consortium.
The property investment group said it remained confident in its ability to finance the project and claimed to have already attracted significant interest from a range of prospective investors.
A spokesman said: “It has always been REO’s strategy to partner with a new investor, and we hope to announce significant progress in this regard early in the new year.
Construction on Phase 1 of the development is scheduled to commence in early 2012 with completion in 2016.
The site has proved a graveyard for several ambitious redevelopment plans over the last two decades, all stumbling on raising funding to salvage the derelict Grade II listed power station.
Wandsworth Council approved the scheme in November and referred to the Mayor as an application of strategic importance.
The application is an integral part of the Greater London Assembly’s wider Vauxhall-Nine Elms-Battersea Opportunity Area, one of the largest regeneration proposals being considered in the capital.
Mayor of London Boris Johnson said: “Battersea Power Station has long been an iconic feature of the capital’s skyline, and these plans will make sure that status is retained for years to come.
“The building was once a vital motor helping to power the capital. With its future secured through this regeneration, it will once again play a part in driving London’s economy.”