Communities secretary Eric Pickles approved the house builder’s plans for thousands of homes at the 230-acre Barton Farm site after he was forced to reconsider the scheme after a legal challenge.
Pickles had previously turned it down eight months ago but reconsidered when the firm took its case to the Appeal Court.
The scheme, which is intended to provide 40% affordable housing, “makes a valuable contribution to the considerable level of affordable housing need in the district”, Pickles said.
A spokesman for Cala said: “Winchester is unable to demonstrate a five-year housing land supply and this scheme delivers a sustainable urban extension including 800 affordable homes.”