The council plans to gift 33 acres east of the town to a developer to build 269 homes.
Priory Meadow is located off the Daresbury Expressway close to Norton Priory, and has long been earmarked for housing.
The site, which is bordered to the south by the Bridgewater Canal, used to house a high school that was destroyed in a fire in 2002.
Previously known as Canalside, the plot is one of the last pieces of the Castlefields masterplan and “will make an important contribution to meeting the housing needs of the borough”, according to Halton Council.
This Thursday, the authority’s executive board is expected to approve a strategy, which includes marketing the land, to advance the housing scheme.
Under the terms of the proposed strategy, the council would gift the land to a developer rather than selling it for a capital receipt.
In return, the chosen developer would gift Halton just shy of 100 homes. The council would appoint a registered provider to manage those properties on its behalf for an initial period of 20 years.
In 2007, the council won outline approval for 355 homes on the site but neither disposal of the land to a developer or work on site happened due to the subsequent economic downturn.