The Hackney Fashion Hub has received the green light to start construction on the 20,505 sq ft development.
Work on the site, designed by architect David Adjaye, will begin early next year.
The plans for the £100m development put forward by the Manhattan Loft Corporation and Chatham Works include 20,505 sq ft of new retail space, a café, a restaurant and design studios where up-and-coming local designers can showcase and sell their products.
The developers have promised 450 retail jobs for locals, a pedestrian area with cafés and free business advice for fashion start-ups.
Cllr Guy Nicholson, Hackney Council’s cabinet member for regeneration, said the development was “for local people”.
“One of the key goals for us is that the Fashion Hub creates local jobs and opportunities for residents to create new business,” he added. “It’s crucial that new developments like this benefit the whole community, including existing businesses and town centres.”
London mayor Boris Johnson added: “This is part of an exciting wider economic regeneration of Hackney, including a £2m investment from my regeneration fund, which will completely revamp the high street, and create hundreds of jobs and training opportunities for local people.”