Liverpool City Council has signed an agreement with the Homes & Communities Agency and social landlord Arena Housing Group to retain and refurbish 370 properties previously set for demolition under the Housing Market Renewal Initiative.
A total of 374 homes, 168 of which are vacant, will be retained and refurbished. A further 224 houses, 116 of which are vacant, will be demolished.
The Anfield Village plans received approval rates from residents of between 72% and 88% in the demolition areas.
Cllr Joe Anderson, mayor of Liverpool, said: "This is great news for Anfield and marks a major milestone for this important scheme. Residents have waited too long for this work to happen, and have been rightly concerned and frustrated. I'm delighted that we are now working effectively with our partners to drive forward these plans and build a better future for the area.
"I have pledged to build 5,000 homes in Liverpool over the next four years, and I've also made it a priority for the city to refurbish more homes than we demolish. Although some demolition is still necessary as part of these plans, this is a good example of how we are listening to local people and working with them to bring homes back into use."
The city secured £13.5m from the Government's Empty Homes grant last month, and around £10m of this funding was reserved for the Anfield Village scheme. The remainder of the funding will be provided by the city council, Homes & Communities Agency and Your Housing, part of Arena.
The majority of the properties in the area are small terraced houses with access straight from the pavement, no back gardens and in poor condition. Partners have agreed that the properties and surrounding environment will have to be significantly altered, in order to be attractive to new and existing residents.
Refurbishment work will begin in earnest this summer, with further details on the work to be released in the coming weeks. Plans include the upgrading of the front of the properties, improvements to paving and street furniture, environmental improvements and the creation of space for gardens through demolition.
Further plans include creating larger houses for families by knocking two-into-one, with pilot schemes in Saker Street and Gurnall Street getting underway in August.