Cheshire West & Chester Council's executive cabinet has endorsed a £24m plan to transform The Parade area of Blacon on the outskirts of Chester.
The council called for a planning application to be submitted within 12 months by partners Chester & District Housing Trust and NHS Western Cheshire.
The scheme will include primary care, community and social care services and a minimum of 54 new homes of affordable and market housing.
Council leader, Cllr Mike Jones, said: "Together with partners we are working hard to make these ambitious plans a reality. We believe such a transformation of The Parade will be good for the economy of Blacon as well as a welcome boost for local residents.
"The project will be fit for the 21st Century and we await a planning application to come before this council in the next 12 months.
"By then funding will be finalised and there will be artist impressions of what the new Parade will look like once building work is complete."