Bexley Council’s planning committee has resolved to grant planning permission to housing association Orbit and its partner Wates to redevelop the estate in Erith.
This follows on from the successful regeneration of neighbouring Larner Road into the award-winning Erith Park.
Glen Roberts, operations director for Wates Residential, said the new scheme will feature 320 new homes, of which 80% will be for affordable rent and shared ownership with associated parking and public open space.
It is due for completion in 2022.
Built in the late 1960s, Arthur Street consists of three 13 storey tower blocks and several low rise blocks providing 263 one and two bedroom flats, with some three bedroom maisonettes.
Despite substantial investment since the transfer from the London Borough of Bexley in 1998, the blocks no longer meet modern standards.
International architectural practic HKR Architects has delivered the masterplan and design of the scheme.
Caroline Field, head of regeneration at Orbit, said: “We’re delighted to extend our partnership with Wates to continue our important regeneration work in Erith.
“The redevelopment of Arthur Street will be about more than just bricks and mortar. It will provide an inclusive community for local people who want to live and work in London, but who also want to live in a friendly community. It will be a great place for people to live both now and in the future.”