Lambeth Council has approved plans for the construction of a 19-storey mixed development on Westminster Bridge Road, providing student accommodation, work space and leisure facilities.
Urbanest UK is the client developing the site, estimated to be worth in the region of £50m.
1,093 student beds as well as a college and affordable work space are to feature in the tower.
The development will see the demolition of the Florence Nightingale and an empty 1960s office block, as well as York House and a number of railway arches.
A swimming pool will also be built, which will be free to access by local schools.
Councillor Jackie Meldrum said: “This is exactly the type of mixed development we welcome in the borough that creates jobs, housing and affordable space for small start-up companies
“The redevelopment of this rundown and neglected site will benefit local residents, entrepreneurs and help boost Waterloo as a major location for higher education.”