The Freeks Farm development will also comprise new community facilities including three neighbourhood centres, three new schools and employment opportunities. The development will ensure easy access to public transport and walking and cycling routes.
Mid Sussex District Council's planning committee approved the development.
Homes England, which owns the 200-hectare site known as the Northern Arc, will work with developers to submit detailed planning applications following further community consultation.
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Ken Glendinning, Head of Strategic Land at Homes England said: "This flagship scheme will provide existing and new residents with a mix of affordable and market priced homes to buy and rent alongside schools, new community, leisure, health facilities and employment opportunities in Burgess Hill.
"We developed our plans following discussions with the local community as well as working closely with Mid Sussex District Council and West Sussex County Council to ensure that the necessary infrastructure will be delivered at the right time.
"Over the next three years, we plan to invest around £41 million in vital new infrastructure at the Northern Arc. This will unlock these needed new homes in Mid Sussex, making homes happen faster and ensuring they are a real benefit to the local community. The new infrastructure will relieve traffic pressure and provide better links in this part of Mid Sussex."
Construction of the first new homes at Freeks Farm and associated highways infrastructure is expected to begin in 2020.
When complete, 30 percent of the new homes will be affordable.
(CM/MH)
