Southwark Council has approved architect Landolt + Brown’s designs for Peckham Rye Station Square.
The plan, which will see a new public square created, as well as the regeneration of the railway arches, was approved by a meeting of the planning committee on 1 March.
Councillor Peter John, leader of Southwark Council, said: “This has been a long and, at times, a difficult process.
“But now the co-design work the architects have undertaken with Peckham people, from all walks of life, has resulted in a fantastic proposal that will provide a more open, inviting retail area in this important gateway to Peckham, while remaining sympathetic to the historical buildings around it.
"This is an important step for the regeneration of the area and we will continue to work with local people as we bring the plans forward."
Southwark Council has bought Courage Yard on Shad Thames, near Tower Bridge, which it will redevelop to generate income for frontline services.