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Proposals to build over 5,000 new homes between Stanion and Weldon near Corby in Northants were approved in principle by planners on Thursday night.
Village residents had opposed the development on the Priors Hall site, which will also include primary schools and a City Academy.
Planning officials on Corby Borough Council hope the homes will be built in the next 18 years.
Planners also approved an application to build Corby's new shopping centre.
Known as Willow Place, it is expected to be home to two big name High Street chain stores, and is due to open by Christmas 2006.
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