Muse expects to start work on the sprawling site close to Larkhall town centre in the Autumn, building 330 homes around a new supermarket.
The site will include three and four-bedroom houses, a quarter of which will be affordable housing, a care home, a nursery, a restaurant, shops and a medical centre.
The planning consent could trigger the second round of a long tussle between Asda and Tesco in the area.
When planners gave the scheme outline consent Tesco threatened to scrap its plans for a supermarket in the town at Raploch Street.
Tesco’s proposal, which the council considers not yet ready to go before the planning committee, included plans to relocate Larkhall Thistle Football Club from their current stadium and move Larkhall Bowling Club to a new site to make way for the store.
If Tesco pulled out the club’s dream of a football stadium would fade away.