Isle of Wight Council bosses have overturned a vote by councillors - who had rejected the partnership to secure £900 million of funding.
Damage To Homes After Bursledon Fire
Nearly 60 firefighters have tackled a fire affecting three terraced properties in Bursledon.
Crews were called shortly before 5pm on Monday 10 June to Salterns Lane and found the roof of one of the three-storey properties well alight.
The roof of the first property collapsed, while the rest of the building was also badly damaged by fire.
The adjoining property suffered fire damage to the first and second floors and also its roof.
The third property in the terrace suffered smoke damage.
No-one was injured though.
Group Manager Jason Avery said: "The initial crews were faced a with a large fire and did an outstanding job to control the flames and prevent it spreading any further than it did."
The cause of the fire will now be investigated.
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