Khan says jobs, growth and future prosperity should take priority over politically driven policies to reduce immigration.
His blueprint calls for British Brexit negotiators to pursue a transitional arrangement with the EU which maintains the status quo, and seeks to negotiate a long-term agreement based on remaining part of the Single Market.
He also wants to see the introduction of a post-study work policy giving international students the chance to work in Britain after graduation for 12-24 months.
He has called for the remove of international students from the annual net migration target as a matter of urgency and adoption of a pro-active approach to bring global talent to Britain by reforming the current non-EU visa system.
Khan said in his speech: "The government's long-term position on access to talent remains vague. It's time for us to stand up and make the case for the freedom of movement of people and the benefits it has brought to our economy."
"Immigration brings new skills and innovation to our shores. But despite this it has become an issue too many of our leaders have ducked," said the mayor.
Khan said the government's non-EU visa system is no longer fit for purpose.
"A clear signal of our ambition would be to begin reforming the visa system now," he said.
Carolyn Fairbairn, CBI Director-General, said: "Keeping London ahead of our global competitors is a top priority for the capital's businesses. Businesses urgently need a pragmatic and determined approach from the EU and the UK in Brexit negotiations to lock in investment decisions that will affect jobs and growth for years to come. A quick transition agreement will allow us to start shaping our future trade relationship with the EU."
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