Council bosses approved the plans to build hundreds of new homes in Heath Town.
Demolition work has already begun along the Chervil Rise area of the city and is due to be completed by the middle of 2018.
The new homes will be for both sale and rent and include new council homes.
They will be a mixture of one and two bedroom apartments, and two bedroom bungalows, as well as two, three and four bedroom houses. All of the new homes will have their own car parking.
The homes will be located across several sites as part of the revised 'Heath Town Masterplan.'
Phase one of the enabling works at Heath Town saw the demolition of walkways and garages in the Hobgate Road area of the estate, and other works included disconnecting and re-routing the district heating pipework and the refurbishment of the ground and lower ground floors of Ling House to provide new office, meeting and activity space for the Hope Family Centre.
Now, the council will make changes to the former Long Ley School site, as well as the Chervil Rise shopping precinct and maisonettes as well as the adventure playground on Hobgate Road.
The Qualcast Road, Alma Street, Wyrley Street areas and the Former Duke of York site on Wednesfield Road have also been chosen for development.