UK Secretary of State for Communities and Local Government Eric Pickles has approved the transformation of Old Oak Common in West London into a new part of the city in London.
Under the project, about 24,000 new homes will be built in a programme that is expected to create more than 55,000 jobs.
Mayor of London Boris Johnson proposes to set-up a Mayoral Development Corporation to lead the transformation.
An order has been laid before parliament to create the body Old Oak and Park Royal Development Corporation (OPDC).
Subject to parliamentary approval, the new corporation is expected to come into existence on 1 April 2015.
By the year 2026, both High Speed 2 (HS2) and Crossrail Station are due to be constructed at Old Oak Common, which will be the size of Waterloo with a capacity to process 250,000 passengers a day.
The station will act as a super hub between London and the rest of the UK, Europe and the world.
According to Johnson, the OPDC is the best way to unlock the potential of the site and deliver a £15bn boost to London's economy over the next 30 years.
Acting as a single, transparent body, the OPDC will spearhead the regeneration of the 950ha site that straddles the London boroughs of Hammersmith and Fulham, Brent and Ealing.
Johnson said: "The vast new station at Old Oak Common presents us with an almost unprecedented opportunity to transform an area the size of a small London borough into a thriving new part of the capital, with unrivalled transport links to central London, the rest of the country and beyond.
"London will shortly become home to more people than ever before and there is no doubt that this scheme will provide a real shot in the arm as we look to provide the new homes and jobs that we desperately need."
Once established, the proposed body would have certain statutory powers in infrastructure, regeneration, land acquisitions and financial assistance, and would take on planning powers across the Old Oak and Park Royal area.