Plans have been approved by Cannock Chase Council to build the three-storey facility in Pye Green Road, Hednesford.
The home will be part of a mixed-use development, which already has outline planning permission, for up to 700 homes, a primary school, retail premises, and play areas.
The proposal was submitted by LNT Care Developments, which runs a number of care homes across the Midlands, south of England and Yorkshire.
In the plans submitted to the council, it says the home will offer two types of care – general residential and residential dementia.
It also says that residents and 58 employees are expected to come from the local area.
A total of 21 car parking spaces will be provided as part of the plan.