Last year Burghley and South Kesteven District Council announced they were collaborating to bring forward plans for the 14.7-hectare Barnack Road site which includes a designated commercial area; a mixed-use area; a retirement village; a range of residential properties, including 30% affordable homes; and areas of green and open space.
After carrying out stakeholder and public consultation in May and June 2020, the St Martin's Park application was submitted in November 2020.
Following Wednesday's approval at committee, David Pennell, CEO of Burghley said: "On behalf of both Landowners we are delighted that our application for a quality driven mixed-use scheme at St Martins Park has been approved today.
"We believe that this development will bring opportunity for Stamford and the surrounding area, the wider local economy and businesses, and that through long term sensitive sustainable development our town will become stronger and more resilient to the challenges ahead.
"We are excited to keep working with SKDC to ensure the delivery of St Martin's Park that meets the needs of the current and future generations of Stamford, whilst protecting our wonderful heritage."