The owner of a Banksy artwork in Bermondsey says he wants to hear the views of local people before deciding whether to preserve the mural when the site is redeveloped.
The new building – designed by Glas architects – includes 20 flats and three ground-floor commercial units.
Seven of the new flats will be social rent affordable homes.
The existing two-storey building includes the Return to Oz Cafe and a car wash.
The plans approved by councillors last night include provision for the Banksy mural to be incorporated into the facade of the new building on The Grange.
The site is owned by artist Joe Guner Yusuf Ozlala who told the SE1 website after the committee hearing that he had not yet decided what to do with the Banksy artwork and was keen to hear the views of local people before reaching a firm decision.
The council received 20 objections to the planning application.
"We feel that this is an inappropriately high, inappropriately dense building," said Alaska Building resident Tim Maguire.
Grange ward councillor Lucas Green told the committee that he had received a lot of correspondence about the scheme.
"We feel that it is one storey too high ... and if we could get some compromise on the height and massing then we feel that local residents would be much more supportive," he said.
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