The development on 10.4-acre site in Kensington will contain a school, clinic, shops, restaurants and several hundred flats, half of which will be affordable housing.

Under the plan put forward by Kensington and Chelsea council four large buildings will be replaced: Charles House at the corner of Kensington High Street; a vacant site formerly used by the Territorial Army; the Empress Telephone Exchange and Homebase along with its car park.

Daniel Moylan, deputy leader of the council, said: "This is an opportunity to develop a true vision for the area. It is a wonderful chance to create a complete and sustainable community."

The area will host a clinic with five GPs, a fitness centre and a primary school and nursery for 500 students aged three to 11. The school will have indoor and outdoor playing areas that will open outside normal hours.

"We know that there is already demand for more primary school places so this will satisfy a need that would be there in any case," said Moylan.