The scheme involves the demolition of the exhibition centre and two estates to redevelop the area into four villages and a high street.
The plans have been approved despite ongoing pressure on London mayor Boris Johnson to reject proposals to demolish Earl's Court, which contributes £1bn a year to the local economy and brings £2.5m visitors and 30,000 exhibitors to West London. Camapaigners have also called for the centre to be listed.
Johnson could have chosen to turn the scheme down or call for a public hearing. He said: "I'm in no doubt that the development will provide a massive boost not just to this part of the capital, but to London's wider economy as well."
The development is expected to take 20 years to complete.