The scheme cleared a two-stage review by the Greater London Authority last month and is now set to formally proceed from March.
Demolition of 1-87 Regina Road is already nearing completion, with construction expected to begin this March.
The project will replace the existing blocks with up to 340 homes, at least 215 of which will be council-owned.
Daniel Blundell, who has lived in Regina Road since 2011, said: “It is amazing news that planning permission has finally been given the go‑ahead.
“I am really excited to watch these new homes being built.”
Plans also include new green spaces, a multi-use games area, improved lighting and security, a preschool, a community hub, and better walking and cycling routes.
The development aims to create a safer, greener and more welcoming neighbourhood designed around the needs of residents.
The redevelopment, which was awarded £54 million grant funding, is one of the biggest regeneration projects in Croydon in decades.
Croydon Council announced Lovell as the preferred contractor for the main redevelopment last month.
Following serious concerns about living conditions on the estate in 2021, a resident working group was established.
The working group has helped shape the plans through meetings, workshops and consultations.
Jason Perry, executive mayor of Croydon, said: “I am delighted we have reached this huge milestone in making sure the estate gets the homes that residents expect and deserve.
“This programme has been a great example of how Croydon can overcome the legacy issues it faces.
“The significant grant and approval from the Greater London Authority shows its confidence in our regeneration plans.
“We have put residents at the heart of these plans, demonstrating how we are working with our tenants and leaseholders differently, treating them with respect and making sure their voices are always part of their housing services.”
