Liverpool City Council has selected Redrow as its preferred development partner for land at Park Avenue, dubbed Sefton Park Meadows by campaigners who fought to keep it as open space.
The six-acre site, which the council said lies outside the boundary of the 104.75 hectare Sefton Park, was declared surplus to requirements last year by Mayor Joe Anderson's authority.
The council advertised for a developer to come forward with ideas for a "bespoke, high-quality scheme which is sensitive to the area."
The sum paid was not disclosed as Redrow has entered a due diligence period but the council said it will be released in due course. The estimated value prior to sale was around £10m.
A spokesman for the council said: [The sale price] of the land will provide a much-needed financial boost for the council, and be invested in projects that benefit the city."
Redrow will hold a pre-planning public consultation drop in event in September, at which people will be able to comment on their outline ideas for the site.
Mayor Anderson said: "This land lies outside of the boundary of Sefton Park and was originally earmarked for housing when the park was built.
"I have been clear that any scheme which is brought forward must be of the highest quality, of low density and in keeping with the area.
"At the moment we simply do not have enough executive homes in the city, and I believe this scheme will help us meet some of that demand, and provide more council tax income which we can use to help protect services.
"We all know that these are difficult financial times for the council, and I will make sure the money raised from the sale of this land is used for projects that improve the city."
A spokesman for Redrow Homes North West said: "We will now be undertaking further work prior to submitting a planning application and this will include discussions with the planning authority, English Heritage and others.
"We fully understand and appreciate that this is a site in a very sensitive location. We will ensure that any planning application that is submitted is high quality and in keeping with the local surroundings."