London Mayor Boris Johnson has signed a deal with Berkeley Homes for a major residential-led project on a former industrial site in East London's West Ham district.
The project is expected to transform the unused Parcelforce depot to set up around 3,500 new homes, a school and park across the 10ha site in Stephenson Street, Newham.
Around 100,000ft² of community, business, leisure and retail space will also be developed at the site under the project.
The developers intend to offer over 1,200 homes under the proposed project for affordable rent or shared ownership.
The project is a part of the mayor's initiative to invite institutional investment for the residential developments in the city.
The developer, Berkeley Homes, was selected for the project through the London Development Panel procurement process, which was set up to further housing developments in the UK capital.
Boris Johnson said: "This huge chunk of disused land will be put to the best possible use, creating a whole new neighbourhood including 3,500 much-needed new homes, a new school and a park.
"This ambitious development will help to further the continuing transformation of east London as part of our Olympic legacy."
Planning application for the project is expected to be submitted next year, with a site start scheduled for early 2017.
First homes under the development are expected to be delivered in mid 2018.
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."