Plans for the site, approved by Southwark Council, will involve demolishing all existing buildings to make way for five buildings ranging from five to 40 storeys.

These will provide 1,030 homes covering an area of 1m sq ft and a 132,00 sq ft retail store, a small amount of offices, cinema and healthcare facilities.

Sellar Developments intends to start construction in the second quarter of 2014. It is working with architects Maccreanor Lavington and David Chipperfield to develop the proposals.

The site is identified for development in Southwark Council’s Canada Water Area Action Plan, which was adopted in March last year.

The scheme forms part of a wider regeneration of the Canada Water area which also includes a 40-acre development by British Land.

Councillor Fiona Colley, cabinet member for regeneration and planning, said: “The new homes, with their bold and exciting architecture will replace the lifeless, out-of town, retail-park look the area is associated with.

“The new Decathlon store will be retained as an anchor to the town centre we’re beginning to see emerge. This approval will help to realise the vision of the area action plan to create a new heart for Rotherhithe.”