Birmingham City Council's planning committee has given the go ahead to developer Lendlease for the £1.9bn redevelopment of the Smithfield site.
The redevelopment will see the former wholesale markets turned into a new landmark destination including more than 3,000 homes, offices, a park, retail, and cultural spaces.
Lendlease had revised its proposals, increasing the size of the site by 23%, after Birmingham Pride expressed concerns the proposed Smithfield Park would be two small for larger events.
Construction is expected to begin later this year, with the scheme delivered in four phases over 15 years.