Work will begin on the £66m project to build 300 apartments in Autumn 2015 and is expected to be completed in the summer of 2019.
The scheme will be built along with new shops on Portobello Road and include an energy centre to provide heating and hot water to the new development.
Contractor Ardmore Construction won the £60m first phase of the huge housing scheme, which aims to deliver more than 1,000 new homes.
Rod Cahill, Catalyst Chief Executive said: “We are thrilled that the Royal Borough of Kensington and Chelsea have approved our plans for the second phase of the Wornington Green regeneration.
“Reactions from those that have moved into the first phase are positive and we’re excited to keep up this momentum by not only providing new homes but also new shops in phase 2.”