The new US Embassy has been granted outline planning permission by Wandsworth council.
The proposals for the building, located at Nine Elms, south-west London, will now be passed to Mayor Boris Johnson for consideration.
While the detail of the design has not yet been clarified, it is understood the new embassy, which will replace the current Grosnevor Square site, will be between 15 and 20-storeys high and be forced to preserve existing views of Westminster.
Planning applications chairman Leslie McDonnell said: “This is an outline consent which sets out the broad terms on which the development can proceed. There is a lot of detail still to be resolved and most of this will become clear once the winning design has been chosen.
“At this stage we will be looking at the building’s appearance from Nine Elms Lane, the effect on important local views and the impact on Battersea Power Station.
“We are delighted that this scheme is moving forward. It promises to kick-start the wider regeneration of this part of north Battersea and encourage further development on other sites in the area.”