Victorian Planning Minister Matthew Guy has approved five planning permits for the construction of 11 towers at Fishermans Bend.
The Herald Sun reports it will include one 40-storey tower with the others about 30-storeys high. It is expected to add more than 2800 apartments.
Developers will have to pay more than $44 million dollars to the government in development contributions.
Mr Guy says the development will take pressure off the suburbs.
"The central city is the right area for high-density urban renewal," Mr Guy told the newspaper.
"The towers would be mostly apartments with some shops at ground level, as well as parking. Trees and shrubs would be planted along the roadside," he said.