Sedgley Police Station, on Vicar Street in the town, will be partly demolished alongside existing garages and converted into nine flats.
And three terraced houses will be built on the existing car park of the historic station, which went under the hammer last year for £820,000.
A statement from the planners said: "This is a full planning application for the conversion of the former police station into nine self-contained apartments and the erection of three terraced houses on the existing car park, with parking for the houses and flats at the former police station building.
"The police station has been altered and extended over the years, although it is understood that the oldest parts date from the early 19th century and that it was originally used as a workhouse, before being extended and converted to a police station.
"The building is considered to be a non-designated heritage asset."
The building, next to All Saints Parish Church, had a guide price of £260,000 with bids starting at £300,000 before the price sky-rocketed.
The station, which extends to more than 7,000 sq ft, was once the local workhouse before it was converted into a police station in the 1860s, and parts are thought to date back to the 1730s.
Police chiefs argued at the time that many of the buildings were under-occupied and the money could be better spent on frontline officers.
The station was due to close in the summer of 2019 but the last officers based there only left finally in October last year to move to Dudley Fire Station as part of a shared-premises scheme. The station had not been open to the public for some time before that.
Councillors will discuss the issue on Wednesday, with officers recommending they approve the proposals.