London Mayor Boris Johnson has approved a strategic planning framework for the construction of more than 25,500 new homes, creating up to 65,000 jobs at Old Oak and Park Royal.
Launched in April 2015, the Old Oak and Park Royal Development is expected to regenerate a site that includes London boroughs of Hammersmith and Fulham, Brent and Ealing.
The new project can offer nearly 14% of Greater London's employment requirements up to 2031, and is expected to contribute £7bn annually to the UK economy in the initial stages.
This approval follows the Opportunity Area Planning Framework for consultation, which indicated the mayor's long-term vision for the area.
London Policy and Planning Deputy Mayor and Old Oak and Park Royal Development chairman Edward Lister said: "London urgently needs new homes and commercial space to meet its ever growing population and there can be no doubt that the regeneration of Old Oak represents a real opportunity to meet those needs.
"This strategy will mean we can plan for the future of this vast site as we work to create a new, thriving and sustainable part of the capital, where people will love to live, work, play and visit."
The framework supports the creation of a new urban neighbourhood at Old Oak, which will include a minimum of 24,000 new homes, along with the development of an additional 1,500 properties within non-industrial locations in Park Royal.
It also aims to protect and enhance Park Royal as a strategic industrial location, and ensure development safeguards for nearby amenity assets including Wormwood Scrubs and the Grand Union Canal.