Corby Developments has been given the go-ahead for the final 735 homes at Priors Hall alongside the A43 Stamford Road by East Northamptonshire Council.
Plans for more than 4,000 homes on greenfield land and a secondary school had been approved in 2007.
The final stage was backed by the council development control committee.
The final stage of a 5,000-home development near Corby in Northamptonshire has been approved by councillors.