The Brent Cross development will go ahead without a ministerial call-in.
John Denham had called the scheme in, but new CLG Secretary of State Eric Pickles has reversed the call-in decision, saying his intervention would not be justified. LB Barnet and Mayor Boris Johnson have already given approval to the £4.5bn, 7,500 home scheme, which is just outside Brent.
The 20-year project, which also involves rebuilding three schools and Cricklewood Station, is estimated to create 27,000 jobs. Work is due to begin in 2014.
Barnet council approved the scheme in November last year but John Denham, who was then Communities Secretary, put it on hold to consider whether to order a public inquiry.