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The Alliance, a joint venture between The Crown Estate and Land Securities, has spent four years preparing the plans and undertaking extensive consultation.
The retail-led mixed use development will have John Lewis as its anchor department store, and is scheduled to open in 2017.
The new Westgate will provide space for shops, restaurants, cafés and leisure uses including a cinema set in a mix of covered streets, arcades, lanes and squares.
The existing Westgate will be completely refurbished and adjacent land to the south redeveloped to provide:
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• up to 81,922 sq m for shops (approximately 100 new shops) including a John Lewis department store
• up to 26,712 sq m for cafés and restaurants
• up to 5,986 sq m leisure uses including a cinema
• between 27 and 122 new homes
• a two storey basement car park providing between 900 and 1,100 spaces
• cycle parking
• a new shop mobility facility and new public toilets.
• a new landscaped walkway along Castle Mill Stream
• re-routed bus priority lane along Thames Street, Abbey Place and Castle Street
• create a new taxi drop off/pick up at Old Greyfriars Street.
The new Westgate will create two major new public squares, provide two 24 hour east-west pedestrian routes linking Castle Quarter to Turn Again Lane and Old Greyfriars Street to Oxford and Activate Learning (City of Oxford College) and one 18 hour north-south pedestrian route through the site.
Sara Fuge, Development Manager, Westgate Oxford Alliance, said: "We are delighted that Oxford City Council has resolved to grant consent for this exciting development. Our investment will deliver an improved Westgate which will enhance the attraction of Oxford for residents and visitors.
"We look forward to continue working with Oxford City Council, Oxfordshire County Council and the local community as we progress with stage 2 in developing our detailed designs."
(CD)
