In July, members of the Royal Borough of Greenwich refused plans for the scheme due to concerns about the development's height and density and its impact on air quality, contrary to a recommendation from officers.
The application was then called in by the mayor of London for his own determination.
The Kidbrooke Square development, being progressed by mayoral agency Transport for London (TfL) and housing association Notting Hill Genesis, proposes the construction of 619 homes, 1,073 square metres of office space, 366 square metres of retail space, 216 square metres of flexible retail/business space, and a 365 square metre nursery, within buildings of nine to 20 storeys.
There would also be a replacement bus interchange and new public spaces. Meanwhile, 51 per cent of the proposed homes would be affordable.
A Greater London Authority (GLA) report, which recommended that the scheme be approved, said the density of the proposals "is appropriate considering the nature of the site, its context, and the quality of the design".
It said the proposal would have a net density of 1,058 habitable rooms, or 377 units per hectare, "which would be within the [London Plan] density matrix guideline range for a ‘central’ setting".
It added that the scheme "provides a good standard of residential quality, including space standards; aspect, outlook and privacy; play space; daylight, sunlight and overshadowing; air quality; and noise".
On air quality, the report advised that "residents and users of the scheme would be sufficiently protected from air quality impacts arising from the surrounding roads".
The proposals had been subject to "extensive design scrutiny, which resulted in improvements to the scheme, including the positioning of buildings, residential units, and play spaces in order to minimise the exposure of future residents to poor air quality (and noise)," the report advised.
Overall, the report said GLA officers "consider that the design and layout would optimise the development capacity of the site, responding appropriately to the environmental and site access constraints."