The Fordel village, developed by Dalkeith-based Oakridge Property, will create up to 300 new jobs in Midlothian during construction and operation of the retail and visitor centres, hotel, shops and cafes.
Planning permission was approved in principle in June 2011 for the development at Fordel, on the A68 south of Dalkeith.
However, the Scottish Government "called in" the application because the proposals were contrary to the Edinburgh and the Lothians Structure Plan and the Midlothian Local Plan. The council said the Government confirmed the development can go ahead.
Jim Bryant, cabinet member with responsibility for economic development, said: "We're absolutely delighted with the news that this development can now go ahead.
"This is a significant milestone in nurturing economic recovery for the area. We are confident this is the best location for this tourism village and we look forward to working with developers on this exciting project."