Plans for the £180m transformation of a historic market in Canning Town, east London, have been given the green light by the London Thames Gateway Development Corporation (LTGDC).

The 680,000sq ft (63,174sq m) regeneration of Rathbone Market will be one of the first projects as part of a wider redevelopment masterplan for the Canning Town area, incorporating a new market square and 49,000sq ft (4,552sq m) of retail space and cafés. A new 21-storey building, which has been intended to provide an iconic addition to London's skyline, is also included as part of the project, as well as a new library, a new 'front office' for the London Borough of Newham and improved transport links with Canning Town station.

It is anticipated that planning permission will be granted in April for the scheme, which has been designed by London-based CZWG Architects and is led by the English Cities Fund (ECf), a joint venture between Muse Developments, the Homes and Communities Agency and Legal and General. Local landowners and the London Borough of Newham council is also involved with the scheme, which has also received the backing in principle of London mayor Boris Johnson.

ECf project director, Howard Morris, said: "At a time of great uncertainty, we and our partners are looking forward to delivering positive change and a vibrant new hub in Canning Town, complimenting and contributing towards the massive changes that the whole of East London is undergoing with the arrival of the Olympics in 2012. The next few years are a crucial time for regeneration projects across the country and our commitment to delivering this development in Canning Town shows that we will be ready to drive forward key projects with the upturn in the economic cycle."

Andrew Daws, design partner for Rathbone Market, added: "Our scheme for Rathbone will not only bring opportunity for new homes, a revived street market and enliven the area with bold colour, but inspire residents to see their neighbourhood differently."