The Forest of Dean district council has approved the UK Homes and Communities Agency's (HCA) plan for a £100m regeneration programme to transform a former mining area in the Forest of Dean.
HCA's plan called for a new access road, 18,800m² of business space and a 7,750m² college facility near the town of Cinderford.
The proposal also included construction of about 195 new homes at the Northern Quarter site, a hotel and a visitor information point.
According to HCA, the project will help unlock investment and create around 1,000 new jobs in the district.
HCA head of area David Warburton said: "This decision will help to bring huge benefits to the Forest of Dean for generations to come and is a massive boost for the area.
"Local people and councillors have supported proposals for the regeneration of this former mining area for years. Their continued support has been demonstrated by their strong backing of the proposals.
"A great deal of work has been undertaken and investment made to get to this stage, in progressing plans, preparing the site and carrying out extensive ecological measures.
"The next phase of hard work starts now and we will work with partners to help make their vision for the Northern Quarter a reality."
HCA is currently searching for a development partner to build the new access road to unlock the Northern Quarter site.
Once a developer is appointed construction work will start in 2015, following the completion of extensive environmental work in earlier in the spring.
Image: An artist's impression of the Cinderford Northern Quarter development. Photo: courtesy of UK Gov.