Owner the Workspace Group will transform the site into a mixed-use scheme containing 800 new homes.
The former Peak Frean biscuit factory is currently home to 270,000 sq ft of business space let out in small units to local firms.
The current building will be redeveloped alongside 60,000 sq ft of new business accommodation and 800 new residential units.
The 12 acre site will become fully integrated into the local community with a 1 acre public park and new routes through the site which will link the ‘Blue’ Shopping Centre with Bermondsey Underground Station.
Jamie Hopkins, Workspace Chief Executive Officer said: “We are delighted to announce planning approval at our Tower Bridge Business Complex which is an important step in our continued redevelopment programme.
“There is strong demand for tailored business space in the area and it is our firm intention to increase the number of jobs on site in order to benefit the local community.
“The development also provides a significant boost to both the capital value and rental income of the site.”