The 12-acre site of the former Queen Mary School in Liverpool could be used for the construction of 190 new homes.
Regeneration Liverpool, a joint venture between regeneration specialist Sigma Inpartnership and Liverpool City Council, has signed an option agreement with the city to facilitate the redevelopment of the derelict site.
Countryside Sigma, an affiliate company of Sigma Inpartnership, is actively seeking to secure planning permission for the housing scheme.
It is intended that half of the new homes will be available to purchase on the open market and the remainder will be available for private rent.
Liverpool City Council last month approved plans for a private equity fund to be established to pay for 1,000 new homes for rent to be built over the next three years.
The agreement opened the way for additional development sites to be allocated to Regeneration Liverpool, including the former Queen Mary School site.
Ian Simpson, land director at Countryside, said: "The development will provide a range of high quality two, three and four bedroom homes.
"We believe it will have a really positive impact on the community and ultimately provide a new, improved neighbourhood on the site of the former school."