The deal will see developers Lend Lease and Quintain Estate start house building this autumn, and create over 4,000 jobs building 1,350 new homes by the end of 2015.
The Homes and Communities Agency is working with the developers who form the Greenwich Peninsula Regeneration Ltd to get house building started on the 190 acre plot.
Around 10,000 new homes, 600 student beds, and 3.5m sq ft of commercial floorspace are ultimately planned for the site, transforming what was an old gas works into a major new residential, business and leisure district.
Greenwich granted outline planning permission for the project in 2002, and detailed planning applications are expected to be submitted in April.
The Mayor said the deal was part of a big push to release more land to drive investment in London’s economy and to deliver more desperately needed housing, particularly affordable housing, for Londoners.
He also announced progress on a number of other key sites in London, including at two former hospital sites in Cane Hill, Croydon, and the Queen Elizabeth site in Tower Hamlets, where more than 800 homes will be built, subject to planning.
The Mayor of London, Boris Johnson, said: “The transformation of Greenwich Peninsula is undoubtedly one of the most exciting development opportunities in London.
“This latest phase of regeneration will seal its future as a thriving, well-connected new district, combining vibrant new residential areas and fantastic leisure facilities.”
Jackie Jacob, HCA London Director, said: “The HCA has been instrumental in brokering the deal to secure the next phase of development at Greenwich Peninsula, meaning that work can start on site later in the year.
“We look forward to the delivery of more high-quality homes that will enhance availability and choice for Londoners.”
Rebecca Worthington, Finance Director at Quintain Estates and Development, said: “We are delighted to have worked with our partners to unlock the residential element of the scheme and look forward to starting the construction of new homes with unbeatable views of the Canary Wharf skyline later this year.”