South Ribble Council has granted outline planning permission for a 400-home scheme on a 42-acre site at Croston Road, Farington.
The proposal from the Homes & Communities Agency includes 30% affordable housing.
The new homes will meet strict environmental standards according to the HCA, and the development has been designed to work within the framework of the existing ecological features.
The development was masterplanned following consultation with local residents, statutory consultees and the Places Matter panel of design experts. As well as enhancements to nearby junctions, cycle lanes and bus stops, the plans include the provision of a spine road through the site. The scheme will make provision for new community and leisure facilities.
The site is part of a wider area allocated for housing under South Ribble Council's Local Development Framework, and forms part of the £434m Preston, South Ribble and Lancashire City Deal, the programme currently delivering road, transport and infrastructure improvements throughout central Lancashire.
The HCA is now seeking to appoint a development partner for the site.
Marie Hodgson, head of area for Lancashire & Cumbria at the HCA, said: "I am really pleased to see that this development has been approved. It is fantastic news for Leyland, and the fact that it was supported unanimously by the planning committee's members clearly demonstrates that the collaborative approach of the Preston, South Ribble and Lancashire City Deal is delivering real results for the area."
Aecom provided planning advice to the HCA.