"Permission for the Vodafone event has been granted," Additional Police Commissioner Vishwas Nagre Patil told PTI.
The event has been shifted from Marine Drive to Bandra Kurla Complex(BKC) following objections from the residents of the picturesque south Mumbai venue.
Police have given a list of 'Dos and Don'ts' to the organizers and asked them to ensure proper barricading.
The organizers are expecting about 40,000 people for the event, police said.
Maclaren's Hamilton, the 2008 Formula One Champion, is coming down to Mumbai after winning the Italian GP last Sunday, his third win of the season.
Last year, he had participated in a similar event in Bangalore.
"I had a wonderful experience in Bangalore last year and this year I am hoping that the excitement will be faster, smarter and better in Mumbai," the F1 driver said.