The decision, by Mayor Sir Robin Wales and the Newham cabinet, means the council will now begin detailed negotiations with University College London (UCL) regarding the proposed redevelopment of the Greater Carpenters Neighbourhood, a 23-acre site in Stratford, not far from the Aquatics Centre used for London 2012.

UCL's proposals for the site include academic and research facilities and new residential accommodation for students, UCL staff and others.

It has been estimated that the scheme could create some 3,300 jobs and add £150 million ($240 million/€190 million) a year to the local economy.

Sir Robin said the decision "supports our vision to transform the Greater Carpenters Neighbourhood into a high quality educational, commercial and residential quarter benefiting Stratford and the rest of the borough".

He described the scheme as a "fantastic opportunity" for Newham residents and said it would act as a catalyst for further investment.

The latest announcement comes nearly a year after the Council signed a Memorandum of Understanding (MoU) with UCL giving them time to develop proposals.

Proposals for the regeneration of the Carpenters Estate, which was built in 1967 and includes three large tower blocks, have been under consideration since 2001.

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