Plans by Gaterule Ltd to redevelop the southern side of Lavington Street - between Ewer Street and the Premier Inn - have won the unanimous backing of Southwark's planning committee.
The scheme has been designed by Allies & Morrison whose offices are just a few yards away on Southwark Street.
The proposed development includes a 10-storey office block as well as 173 flats in three buildings of eight, 13 and 21 storeys, as well as three three-storey mews houses.
"Officers consider that the scheme exhibits a high standard of design which would be a positive addition to the area," said planning officer Terence McLellan.
Architect Artur Carulla told the committee that the scheme would "redevelop a substantial site at the heart of Bankside".
"This is probably the last opportunity for urban regeneration at this scale north of the [railway] viaduct," he said.
Of the 176 homes in the development, 21 are proposed as social rented housing and 13 as shared ownership. In addition, the developer has agreed to pay the council £7.725 million in lieu of meeting its full obligations for on-site affordable housing.
Cathedrals ward councillor David Noakes addressed the committee to object to the scheme's height, density and failure to deliver 35 per cent affordable housing on site.