The London Borough of Hammersmith and Fulham’s planning applications committee granted the proposals detailed planning permission at a meeting yesterday evening.
The application, submitted by King Street Developments Hammersmith – a joint venture between Helical Bar and Grainger - proposes 196 new homes, a three-screen cinema, replacement council offices, new retail, restaurant and café space, as well as a new town square.
An officer’s report to the planning applications committee had recommended that planning permission be granted.
It said: "Officers consider that the development would enhance the built environment and public realm in this part of Hammersmith town centre and enable the delivery of much-needed housing. It would be a high-quality development which would act as a catalyst to regeneration."
The council said it had received eight objections to the development and five responses in favour during the consultation.
The approval comes more than a year after the west London borough announced a rethink of the proposed redevelopment of the town hall site.
In November 2011, the borough’s planning applications committee approved an earlier iteration of the plans, which included taller buildings.
But the council withdrew its referral to the mayor of London in December 2011, when it became clear that the Greater London Authority had concerns over the proposed height of two of the residential blocks and the resulting impact on views from across the river.
In July last year, the borough said that the old proposals would not be pursued, giving a "cast iron guarantee" that the new proposals for the area would not exceed eight storeys.
Hammersmith and Fulham Council leader Nicholas Botterill said: "We listened to residents and ditched the less popular elements of the previous scheme and I now believe we now have a scheme that Hammersmith can be proud of.
"It’s been hard work, but we finally have a plan that will kick-start the much needed regeneration of the west end of King Street. The developers can now get on with the important work of breathing new life into this rather rundown area."