The centre will expand on the north-east side by 29,992square metres, including a new department store and 100 shops, 1000 extra car spaces and a new ring road. Highpoint will now have a floor space of 155,360square metres - just under the total area allowed of 156,000square metres.

GPT retail development manager Damien O'Connor said construction would begin early next year and be completed by the end of 2013.

He said the expansion would create 1500 ongoing jobs, bringing the total employees at Highpoint to 5200.

Cr Michael Clarke said Highpoint had to develop to survive. "If it fails to grow, this is a centre that will, over time, die."

Every councillor supported the motion with the exception of Cr Catherine Cumming.

The final planning approval is dependent on VCAT as Highpoint had appealed in December against council's delay in granting a permit.

The council received 29 objections to the plans. Neighbouring residents expressed concerns on increased traffic, Warrs Road merging into the two-lane Highpoint Boulevard, the shopping centre being closer to their properties, and having a multi-storey car park overlooking their houses.

Maribyrnong Residents Association secretary Alan Ross said the development would "create a good deal of disquiet among the general population. There is not a lot of give and take in the scheme at all". He said the association would take part in the VCAT appeal in the hope it could get more concessions.

Cr Clarke acknowledged the concerns but said GPT had been an "exemplary" owner in consulting with residents on several occasions.

Cr Martin Zakharov said there would always be tensions between the shopping centre and its neighbours.

"Like any negotiations you can't get everything you want. They [Highpoint] are going to be here whether this goes ahead or not, so going to war with them isn't in our best interests or theirs."

GPT has agreed to involve residents in landscaping design and to consult throughout the process.