More than 1,650 new homes, a new primary school and shops have been earmarked for the 22 hectare site.

The site is the first major scheme to be procured through the new London Development Panel, set up by the Mayor to fast track the disposal of public land to boost construction and housing.

Cash raised from the sale of the site will be ploughed back into the development of a brand new police training facility on a corner of the site.

Mace has the £35m contract, which involves demolition of existing buildings and construction of two buildings, with one up to four storeys in height. Architect on the project is Bennetts Associates.

The Mayor of London Boris Johnson said: “This regeneration will create much needed jobs and homes to drive growth in a vital area of north London, as well as bringing schools and parks to a thriving new neighbourhood.

“The iconic Peel Centre has been at the heart of the Met for almost 80 years, and these proposals will cement Hendon’s future as one of the best police training grounds in the world.”

The sale of the site is part of a wider strategy by the Mayor’s Office for Policing And Crime to dispose of underused land and buildings in its vast and expensive estate, which will save £60m in running costs and help the force protect front-line policing.