Developers also plan a new public park, squares, courtyards, cycle routes and footpaths, linking the site with the rest of the city.
The scheme had already received outline planning permission and forms part of wider proposals to transform the former railway land into a mixed-use neighbourhood.
When fully built York Central is expected to deliver at least 2,500 homes, more than one million sq ft (93,000 sq m) of commercial space and support about 6,500 jobs.
David Skaith, Mayor of York and North Yorkshire, described the approval as “a big moment” for the development, which he said would provide much-needed housing and jobs.
“Soon we’ll see York Central take shape and transform how people see our county,” he said.
More than £135m has already been invested in infrastructure at the site, including a new road network and pedestrian and cycle links.
The first buildings are expected to be completed by early 2029, with the initial phase due to be finished during 2030.
