ReBlackpool and Blackpool council have appointed Emerson subsidiary Newfield Jones Homes as the preferred developer on the Bancroft Park Housing scheme.
The project is the first residential development to be brought forward under ReBlackpool's regeneration masterplan. It will offer two bedroom apartments and three/four bedroom houses.
The £5.4m scheme has been earmarked for £1.1m from the Blackpool council's capital receipts.
The development agreement for the already cleared brownfield site on Baron Road, is due to be signed and consulted upon by both Blackpool council and local developer Newfield Jones Homes, with the decision for the new residential scheme expected to follow.
Doug Garrett, chief executive of ReBlackpool, stated: "Better quality housing is a key element of the resort's regeneration strategy. Bancroft Park demonstrates our partnership approach to regeneration, in which we work closely with the public and private sectors, making Blackpool a better place to live, work and play."