The Rooff Group had its former yard seized under an Olympic Compulsory Purchase Order in 2007.
The contractor launched a legal fight claiming the land could have been used for residential development and was worth a lot more than the original offer.
Rooff – which is now based in Barking – has taken its claim through a succession of courts
The Secretary of State has now ruled in Rooff’s favour and confirmed that planning permission would have been granted for mixed use development incorporating residential development and commercial development.
Rooff managing director Mark Horn said: “This ruling by the Secretary of State clearly reflects the nature of our landholding and its potential for redevelopment prior to the Olympic Games being awarded to London.
“I hope that we can now move swiftly towards an agreement with the acquiring authority over fair compensation for the land”.