The deal to develop the disused 10-hectare Parcelforce depot at Stephenson Street in Newham with  also see a new school built as well as nearly 30,000 sq ft of shops.

Following a planning application next year, a site start is targeted for early 2017 which would see the first homes delivered in Summer 2018.

It will provide homes to buy and rent, including a significant proportion of shared ownership and purpose-built private rented homes. More than 1,200 of the 3,500 homes will be affordable.

Berkeley Group chairman Tony Pidgley said: “Stephenson Street will be a new village for London.

“It will have all the qualities that a successful community needs: shops, workspaces and a school, links between neighbours, a beautiful park where people can play and great transport connections.

“Above all, this site will create homes for people regardless of their age, background or income. It will be a place for everyone.”

The development of the Stephenson Street site is part of the Mayor’s pledge to release all City Hall-owned land for development by the end of his Mayoral term in 2016.

Almost all these sites are now up for development and include the regeneration of four former hospital sites and industrial land at Greenwich Peninsula and Barking Riverside.

Around 50,000 homes will be delivered on City Hall’s land interests.

Berkeley Homes was selected from a shortlist of four developers as the partner for the new site as part of the London Development Panel procurement process, which was set up by the Mayor to accelerate the delivery of housing in London.