The outline planning application for the homes, up to 1.2 ha of mixed-use buildings, five ha of employment land, a primary school, open space and key infrastructure has been submitted to Cannock Chase Council.
The news comes after the first stages of the demolition of the former power station have taken place, while the other main structures, including boiler house, chimney and cooling towers are scheduled for controlled collapse through the remainder of 2019 and 2020 and the complete demolition of the site is expected in 2021.
Plans were announced for a mixed-use development at the end of last year - transforming the site into an entirely new sustainable and smart community.
And now the development has taken a leap forward as plans have been submitted for the 139 ha site by agent Michael Davies from Savills, on behalf of owners ENGIE.
In the planning documents he says: "The Rugeley Power Station development will be characterised by the quality of its design which includes; innovation in energy production, its outstanding public realm, creation of jobs, access to amenities and environmentally conscious development.
"Redevelopment will create new pedestrian, cycle and vehicular links into the site - which has historically been fenced off with limited access - establishing a permeable environment.
"Developing the site’s natural assets into public amenities and providing a variety of new sports facilities will draw town residents to the site.
"The proposal is for a mixed-use development with a new primary school, employment uses, housing for the elderly, community facilities including healthcare uses and up to 2,300 new homes.
"A new neighbourhood centre will meet the everyday needs of the people living and working there as well as serving nearby parts of the town. It is envisaged that approximately 25 hectares of land along the River Trent will become a natural Riverside Park which new residents as well as the residents of the town will be able to access."
Rugeley A power station opened in 1961 while Rugeley B power station, which provided enough electricity to power around half a million homes, followed nine years later.
There were plans to convert the power station to run on biomass fuel in 2012 but they were never carried out.
The station eventually closed in June 2016 when 120 jobs were lost.
If the outline plans are approved, a reserved matters application with the finer details will have to be given the green light at a later date.
The plans say that construction is estimated to begin next year and to carry on until 2040.