Liverpool City Council has granted consent for controversial plans to demolish 280 houses and build 154 new homes.
Communities Secretary Eric Pickles will now decide whether the Welsh Streets scheme should be the subject of an inquiry.
Councillors also gave outline approval for a second phase of redevelopment that would see the demolition of a further 160 buildings to be replaced with up to 73 properties.
The £15m regeneration plan for the Toxteth area of south Liverpool has been at the centre of 10 years of public consultation.
The scheme designed by Triangle Architects will be delivered by the city council and housing association Plus Dane.
It will initally lead to the refurbishment of 37 homes – including the Madryn Street childhood home of Beatles drummer Ringo Starr – and the delivery of 154 new homes close to Princes Park.
Following the resolution of the planning committee to approve the Welsh Streets planning application, the Department of Communities & Local Government issued an Article 25 Direction, which means the Secretary of State will not allow the Local Planning Authority to grant planning permission without specific authorisation.
This is to allow him to consider whether or not he wishes the application to be referred to him for determination.
If he decides that he does want the application to be referred to him then it would involve a public inquiry which would take place at a time and date to be set.
If he decides that he does not want the application to be referred to him then the Local Planning Authority will be able to make the decision on the application in accordance with the planning committee resolution.
Arup associate Hannah Smith, who managed the planning process, said: "Once built, the scheme will make a real difference to the lives of local residents securing much needed regeneration within this tight-knit community."