The empty plot of land in Paddington to be transformed was the former North Westminster Community School site.
The new housing development will also include retail and business space and areas for the community.
Regeneration of the site would see also the demolition of existing buildings and the erection of five buildings of between 11 and 17 storeys tall.
The site has recently been vacated by Westminster College, which was occupying the site on a temporary basis while their new permanent further education facility on the north side of Paddington Green was completed by McLaren Construction.
Cllr Alastair Moss, Chairman of Westminster Council’s planning and city development committee, said: “This is a thoughtful scheme on what is a challenging site.
“The standard of the plans and the light it affords to the neighbourhood despite the density of the scheme get it well over the line.
“The quality of the housing is particularly strong and the designs set a high bar for the site.”
The site is currently owned by the council who are looking to confirm a buyer in the coming months.
It is bound by the Harrow Road and Westway to the north, Hermitage Street to the west and North Wharf Road to the south and east.