Cheshire-based Mulbury Homes is to build 14 houses for Great Places Housing Group on the site of a former pub in Salford.
The £1.6m scheme is at the junction of Howard Street and Eccles New Road in Weaste.
The site was cleared several years ago and used to house the Stowells Spire pub. Mulbury will build 14 three-bedroom houses, funded by the Homes & Communities Agency.
Greg Mulligan, director of Mulbury Homes, said: "Previous plans for apartments were not viable and our new development will bring this run-down site back into productive use in a way that will enhance the local environment, while providing much needed affordable housing."
Building work is expected begin in early spring and the project is expected to be complete in around 12 months.