The original glass building was moved to south London in 1854 but burned down in 1936.
Consultation will now take place on the plans to recreate the Victorian site, and a planning application could be submitted in autumn 2014.
Mayor of London Boris Johnson said: "Crystal Palace was a beacon of innovation in the 19th century, encapsulating a spirit of invention which was to shape London and the world for generations to come. Since the iconic building was destroyed, the conundrum of what to do with the crumbling site has not been successfully resolved.
"This is a vision that could not only see a world-class landmark building reinstated, of the quality of the original, but the restoration of the entire surrounding park, bringing jobs and growth. Together with Bromley council and taking account of the views of local people and leading experts, we'll now be working closely with Zhong Rong Group to progress these plans in more detail."