Vistry Group has received formal outline planning permission from Chichester District Council to deliver 1,300 new homes and community facilities in Tangmere.
The scheme includes a new primary school along with commercial and community spaces.
The project, called the Tangmere Strategic Development Location Site, had first got a resolution to grant permission in March 2021.
Due to complications with the compulsory purchase order and changes to the planning boundary, the application needed to be revisited.
Another resolution to grant permission was secured in August 2023, and the formal decision notice has now been issued.
This allows the project to move forward to its next stage.
Vistry Group was chosen by the council to lead the development, which is included in the Chichester Local Plan and the Tangmere Neighbourhood Plan.
Plans have been developed together with Tangmere Parish Council and local residents.
Martin Leach, managing director at vistry strategic land, said: “Receiving formal outline planning permission is a significant step in realising the vision for Tangmere.
“We remain committed to working closely with Tangmere Parish Council and local residents to produce a Design Code that will guide the next phase of this transformative development.”
The project will now go into the reserved matters application stage, focused on detailed design and layout.
Vistry Group expects to start infrastructure construction in 2026, with full development work beginning later that year.