The City of London Corporation gave its approval for the proposed 56-storey skyscraper dubbed 'Cheesegrater 2,' despite objections from St Paul's and the Tower of London.
A spokesperson for St Paul's told the Telegraph that the new building will have a "harmful impact" on views of the historic building, which has views from places including Alexander Palace and Primrose Hill that are meant to be protected from development.
The demolition of three buildings will make way for the new tower run by Lai Sun Development Company - which is listed on the Hong Kong stock exchange - at 100 Leadenhall street.
All but two members of the City of London Corporation's planning committee on Tuesday voted in favour of permitting the development.
The committee's chairman Chris Hayward said in a statement that while he "adored" St Paul's Cathedral, "It does send out [a message], as we've been reminded by several members in this debate, that in these post-Brexit times... the City is open for business".
The 863ft building will become the capital's third tallest when it is completed in 2026. It will provide over 102,000 square metres of office space and public viewing galleries on the top two floors, which will also be used as a bar and restaurant.
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