The vast 45-hectare scheme will transform of one of the largest brownfield sites in England alongside other partners the City of York Council and the National Railway Museum.
The regeneration will build 2,500 new homes and create up to one million sq ft of office, retail and hospitality space, along with improvements to the York Railway Station and an enhanced National Railway Museum.
The one million square feet of new offices, retail and leisure uses, to the rear of York station, will create a major new employment hub for northern England.
York Central will include a new 17-acre urban park, with 50% of the rejuvenated site set to be green space.
Work is already underway on site, preparing it for development, with £135m of infrastructure works currently underway delivering 2km of new roads including bus lanes, segregated footpaths and cycleways, along with two new bridges.
McLaren Property and Arlington Real Estate aim to submit plans later this year.
Leon Guyett, Director of Regeneration Partnerships (York) at Homes England said: “This marks an important step forward for the York Central project, which will have significant impact on the local area. This is a clear example of how Homes England can use its resources and capabilities to bring together public and private sector organisations and make sustainable places possible.”
Tom Gilman, regional managing director of McLaren Property, said: “This is a fantastic opportunity for the city and a milestone moment in the delivery of York Central.
“We are committed and passionate about providing much-needed new homes, best-in-class commercial space, along with substantial green space, enhanced public realm and amenities, all of which will bring significant economic benefits and local jobs.
“As York is my home city, I am genuinely thrilled to work with our partners, local stakeholders and the community on our vision to bring forward a scheme that will breathe new life and regenerate an unutilised brownfield site, connecting it to the great cathedral city of York.”
Allan Cook, founder of Arlington Real Estate, said: “York Central is recognised as one of the largest city centre regeneration schemes in the UK and will deliver huge benefits, not only for the people of York and its visitors, but for the wider economy. This is a landmark project and completion of the formal development agreement is another significant step forwards.
