Developer Salboy can now begin the next phase of 106 houses at the Cromwell Road site after Salford City Council approved the plans.
The application concerned a six-acre plot within the wider 36-acre site, where Salboy plans to build a mix of two-, three- and four-bedroom homes.
Salboy managing director Simon Ismail said: “The response from local buyers to Castle Irwell has been phenomenal with more than 130 properties in phase one now sold and the first residents moving in.
“This is a hugely important project for Salboy and for Salford as we develop a new urban village for people wanting to put down roots here.”
Contractor Domis is delivering the first phase, comprising 157 homes, plans for which were approved last September.
An application for the third phase, featuring 237 apartments across seven blocks, will be submitted at a later date.
A three-acre village green also forms part of the £120m Castle Irwell development.
Salboy also proposes building a school on five acres to the north-east of the site.
The former racecourse turnstile building has been converted into a marketing suite, with plans for a variety of uses once the project is complete.
Elsewhere within the development, Lidl’s application for a 23,400 sq ft supermarket on the corner of Littleton Road and Cromwell Road was turned down by Salford City Council recently.
Once home to Manchester Racecourse, the site was more recently occupied by the University of Salford’s Castle Irwell student village, which closed in 2015.
Salboy bought from the land from the University of Salford in 2019.
The site borders the £10m Second Salford Flood Basin and neighbouring Kersal Wetlands, completed in 2018.
Castle Irwell is designed by Calderpeel Architects and Euan Kellie Property Solutions is the planning consultant.