Surrey Quays Shopping Centre is set for a £30 million investment after Southwark Council granted planning permission for a 110,000sq ft extension.
The new scheme will provide 18 new shops and restaurants, four new kiosk units and space for al fresco dining, as well as an extensive refurbishment of the existing centre.
Work on the extension is due to start on site in spring 2013 with completion scheduled for summer 2014.
Approximately £4 million will be invested in developing the external environment and public spaces around the centre, as well as improving connections to Surrey Quays station and Canada Water tube and bus stations.
Councillor Peter John, leader of the council, said: “The improvements to Surrey Quays Shopping Centre are most welcome and offer a positive next phase in the regeneration of Canada Water.
"The development will bring much needed local investment, new jobs, exciting retailers and family restaurants while improving public areas and travel connections.”
Centre manager Ian Moore said: "This is very exciting news for both Surrey Quays Shopping Centre and the wider Canada Water regeneration. The extension to the scheme will provide a high-quality shopping environment with enhanced travel connections and a much improved retail and restaurant offer.
"Additionally it will create a significant number of job opportunities for local people.”
A new website for the local community, which explains the council's plans for the regeneration of Old Kent Road, has been launched