Wirral Council has granted planning consent to Peel's 170,000m² Wirral Waters mixed use development in Birkenhead and Wallasey.
The development will regenerate derelict brownfield land within East Float at Birkenhead Docks over a period of up to 30 years.
It aims to line the waterfront opposite Liverpool with high buildings to balance its "three graces".
Existing port facilities at Twelve Quays and West Float will be enhanced and 200ha of brownfield land at Bidston Moss, East Float and Vittoria Dock will be redeveloped.
"The approval of this planning application will lead to the total transformation of what is currently derelict brownfield land within East Float at Birkenhead Docks and when finished will create over 27,000 jobs," said cabinet member for regeneration and planning Andrew Hodson.
"This has taken place against a backdrop of the worst recession in living memory and it is a credit to both Peel and Wirral Council that we have kept the plans moving."
The proposal, which includes many tall buildings, some of them more than 50 storeys high, will require a Government decision on whether the scheme must be subject to public inquiry.
The development includes flats, offices, catering, community and cultural facilities and there will be a new retail park at Bidston Moss.
"I am so happy I could cry with joy," said Peel development director Lindsey Ashworth after the vote.
"We are absolutely delighted that Wirral Planning Committee has reached this positive decision; it is what the public wanted and what the area is crying out for. This is an historic day for the future of Wirral and the entire city region."
Peel said that if go-ahead is given it would hope to start on site as soon as the recession allowed; its best guess would be 2012.
