A total of 3,500 new homes will be developed on the site of a disused Parcelforce depot in Stephenson Street, Newham.
The ten hectare site will also include space for a school and a park, along with nearly 100,000 sq ft of community, business, leisure and retail space.
Over 1,200 of the 3,500 homes will be available for 'affordable' rent or shared ownership.
The project is part of the Mayor's drive to release all sites in the capital under his ownership for development.
Almost all of the sites are now up for development and include the regeneration of four former hospital sites and industrial land at Greenwich Peninsula and Barking Riverside.
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Approximately 50,000 new homes will be delivered on City Hall's land interests.
Berkeley Homes was selected from a shortlist of four developers for the project, as part of the London Development Panel procurement process, set up by the Mayor to accelerate the delivery of housing in London.
Mayor Johnson said: "This huge chunk of disused land will be put to the best possible use, creating a whole new neighbourhood including 3,500 much-needed new homes, a new school and a park. This ambitious development will help to further the continuing transformation of east London as part of our Olympic legacy."
Berkeley Group Chairman Tony Pidgley CBE said: "Stephenson Street will be a new village for London. It will have all the qualities that a successful community needs: shops, workspaces and a school, links between neighbours, a beautiful park where people can play and great transport connections."
Following a planning application in 2016, works are targeted to begin in early 2017 which would see the first homes delivered in Summer 2018.
(LM/MH)
