Plans were due to be set in motion last year, but were delayed due to the coronavirus pandemic.
However, the plan is now back on and Khan hopes a new Grand Prix can become the focal point for his major east London regeneration project.
The aim is for the new London GP to be a carbon neutral event and the first race that can only be accessed by public transport.
Unmesh Desai, London Assembly member for City and East and a close friend of the Mayor, said: “It is about opening up east London.