Dudley Council planners have given the thumbs up for the development to take place on the former Jubilee Works and William Foxall premises on Balds Lane in Lye.
The scheme will be a mix of 89 houses and apartments and will feature a new access road to the development.
Planning officers said the site had been vacant for a “notable period of time” and added the development would be an efficient use of the land.
In the application, agents Planit Planning and Development Ltd said: “The proposed development is designed to be as accessible as possible and comply with policy framework on design and access.
“The logical, legible layout that is proposed will serve to ensure that the local environment is safe and convenient for all road users.
“Good road linkage and new pedestrian footpaths and outward facing houses will help to stitch the scheme into the surrounding environment.
“A high-quality integrated landscape scheme and boundary treatment will also help to create a new development which will be a high-quality design.
“The detached and semi-detached properties will include adequate private amenity space for the new residents; residents of the apartment block will be able to access the communal public space close to their accommodation.
“The scheme will aim to provide an attractive premium residential setting that meets the local authorities’ requirements in respect of space and amenity and which lift the appearance of the site compared to the site’s previous industrial land use.
“It will result in the development of a site which is allocated for residential development in a way which will prioritise the delivery of 100 per cent affordable dwellings.”
After granting permission, officers said: “The proposed residential scheme would make efficient and effective use of land within the urban area for the residential development of the site with a range of dwelling types of an appropriate design, layout and scale.
“It is considered that the proposed development is acceptable in principle and that the detailed design of the scheme would not result in a detrimental impact on the character or appearance of the area, the amenities of the occupiers of neighbouring properties or adjoining uses.”