Transport for London (TfL) is currently looking for a development partner for the Limmo Peninsula scheme in east London, which is the largest TfL plot of land released for housing so far.
Plans include the provision of 600 units for affordable housing (40% of total homes).
The Limmo Peninsula is located near Canning Town tube station which is serviced by both the Jubilee line and DLR.
Mr Khan said: “The Limmo Peninsula has the capacity to be transformed into a booming new east London neighbourhood.
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“With Elizabeth line works almost complete, I am pleased that Transport for London is now in a position to bring forward this site for development.
“It is part of my strategy to free up public land and to use it to build the homes that our great city so desperately needs.
“It is no secret that it will take many years to fix London’s housing crisis, and we ultimately need government support – but schemes such as this prove that we can make a real difference now by delivering high-quality neighbourhoods with a large proportion of genuinely affordable homes.”
Mr Khan had previously approved delivering 400 homes – of which half will be affordable – at a site in Kidbrooke, south London, and 55 homes – all social housing – at Fenwick South in Lambeth.