Gove refused plans in August for M&S to demolish and rebuild the store after campaigners said the building should be refurbished because of the amount of embedded carbon it contains.
Plans for a new ten-storey steel and glass office complex on the site have previously been approved by Westminster City Council the GLA and planning inspector David Nicholson.
A High Court ruling has now sided with the retailer following its appeal.
M&S Operations Director, Sacha Berendji:“Today’s judgment couldn’t be clearer, the Court has agreed with our arguments on five out of the six counts we brought forward and ruled that the Secretary of State’s decision to block the redevelopment of our Marble Arch store was unlawful.
“The result has been a long, unnecessary and costly delay to the only retail-led regeneration on Oxford Street which would deliver one of London’s greenest buildings, create thousands of new jobs and rejuvenate the capital’s premier shopping district.
“The Secretary of State now has the power to unlock the wide-ranging benefits of this significant investment and send a clear message to UK and global business that the government supports sustainable growth and the regeneration of our towns and cities.”