The Council refused the proposed plans for the development last July, despite the site being allocated for housing in the Local Plan. It cited issues with highways, transport, access and circulation and surrounding green wedges of land, in its refusal.
The development was proposed by Asbri Planning limited, Barratt Homes and the Welsh Development Agency, which submitted a planning application to the Council last year. The Council refused the plans in July 2011.
The Council has since deleted the proposed development site from its local development plan.
The developers have submitted an appeal to the Planning Inspectorate for Wales, which will be determined by a Welsh Minister, following a report from a Planning Inspector. It is a "recovered appeal" which means the Minister will have the final say on the proposals.
Torfaen Council originally resolved to approve the scheme in 2005, but the legal agreement was not completed within the specified time and so the planning permission was not granted, according to a local report.
The original application sought to build around 1,200 new homes, along with a community centre, provision for shops, playing fields and a school.
Campaigners against the original plans in 2005 delayed the plans for nine years, but halted the campaign after a judicial review claim was defeated in 2005. Concerns were raised over the environmental impact of the development.