The government has given a development consent order (DCO) for the project to be constructed as proposed using 24 building sites in London.
Plans include utilizing six tunnel boring machines from five drive sites, creating over 4,000 new jobs.
The new 25km tunnel will transport sewage and waste water from the capital for treatment.
The tunnel will run from the Acton Storm Tanks in West London to the Abbey Mills pumping station in East London, with a storage capacity of 1,250,000 cubic metres.
Construction on the tunnel is expected to start in 2016 and an independent specialist firm will finance and deliver the project.
Thames Tideway Tunnel chief executive Andy Mitchell said: "If the tunnel had been in operation last year, it would have captured 97% of the sewage that poured in to London’s river."
"This DCO means we can improve London’s river for the benefit of Britain. We appreciate the impact our construction work will have on some communities near our sites, but we will continue to work with them to keep disruption to a minimum."
UK Communities Secretary Eric Pickles said: "This is a challenging infrastructure project, but it is clear that the Thames Tunnel will help modernise London’s ageing Victorian sewerage system, and make the River Thames cleaner and safer."
Image: Discharge point at Vauxhall Bridge. Photo: Courtesy of Thames Tideway Tunnels Ltd.
