Essential Living has secured approval to construct a £100m, 24-storey residential scheme in Swiss Cottage from the Department for Communities and Local Government.
This approval has overruled Camden Council's earlier decision to block the planning.
The planning battle went on over two years for the construction of the residential scheme at 100 Avenue Road in North London.
However, the scheme had been upheld by Department for Communities and Local Government's Secretary of State Greg Clark.
Following the approval, the firm will demolish the present 1980s building on the property.
The residential scheme has been designed by Grid Architects.
The scheme features a low-rise building above Swiss Cottage tube, retail space at ground level as well as ample leisure space.
It will include 148 privately rented homes and 36 affordable homes, reported Camdennewjournal.com.
Essential Living managing director Scott Hammond was quoted by Constructionenquirer.com as saying: "The extensive scrutiny of the scheme during the public inquiry has revealed the significant benefits of the scheme in terms of new homes for rent and community space.
"This is the right decision for the revitalisation of Swiss Cottage and we will now commence the work to deliver our proposals, which we are calling Theatre Square."