Hackney council granted planning permission for the 350-bedroom property on Wednesday (3 February), despite objections from the venue's current owners.
The new cylindrical shaped building will feature a top-floor restaurant and bar, spa and arts centre incorporating an arthouse cinema and gallery.
Park Plaza is currently assisting The Foundry in its relocation and plans to incorporate two of the site's original Banksy artworks into the design.
The hotel is expected to be complete by 2012.
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