Plans for Australia's tallest tower have been given the green light.

The “Green Spine” has two twisting towers with the tallest to hit 365 metres and the other reaching 253 metres.

The $2 billion ​Southbank by Beulah​ building will dwarf the nearby Australia 108 , which stands about 319 metres, and Queensland’s Q1 which is about 322m.

There will be private residences, commercial offices, a five-star urban resort, conference and entertainment centre, and green spaces among the 270,000sqm mixed-use precinct to go on the existing BMW site.

The Victorian government announced on Friday that it had approved the project on City Road in Southbank.

Dutch architecture firm UNStudio and Melbourne-based Cox Architecture designed the building.

The project is being led by Melbourne developer Beulah and is expected to create more than 4700 construction jobs.

Construction is expected to start in 2021 and take five years to finish.