The scheme will be brought forward by developer St Modwen and housebuilder Persimmon Homes, who plan to build 229 new homes, a play area and a new park during the first phase of the development.
The housing will be delivered by Persimmon Homes and will include a mix of two, three and four bedroom homes and 36 of the homes will be allocated for affordable housing. The first phase of the development will also include a children's play area, a park, the widening of the River Arrow and a £500,000 contribution towards primary school education in the area.
The Council also approved the proposals for outline plans which were submitted for the wider regeneration of the 467 acre site. The approved plans for the whole development include up to 725 new homes and a new community centre.