Keon Homes Limited has been given the green light by Wolverhampton Council planners for the development, which will be constructed on the former Springfield Brewery maintenance yard.
The scheme will see a total of 64 properties constructed, featuring 31 two-bedroom houses and 33 one and two-bedroom flats.
An arson-hit disused warehouse building will be demolished to make way for the homes but the boundary wall will be kept on the Cambridge Street site.
Springfield Brewery first opened in 1874 and the adjacent site was run as a maintenance yard from 1895.
The Grade II listed brewery closed in 1996 after years of decline in the business and was eventually taken over by the University of Wolverhampton, which opened a new campus there in 2014.
The whole site sits within the Springfield Conservation Area, and the Grade II listed brewery gates remain after being refurbished.
In the application, the developers said the warehouse building has lain empty for a number of years and has been damaged by fire.
Historic England raised some concerns about the loss of buildings for the development but a heritage statement supporting the scheme said the design of the homes will be sympathetic to the area and even help enhance it.
Agents BM3 Architecture said: “The end user, Wise Living, provide purpose-built housing for the private rental sector, and see this as an opportunity to provide a unique development in a sustainable location for those looking for low maintenance accommodation.
“The brewery went through a long period of decline from the 1960s, with partial demolition making way for a warehouse in the 1980s and brewing ceasing in 1996.
“The University of Wolverhampton purchased the derelict brewery site in 2014, and now houses the School of Architecture and Built Environment campus.
“The site is occupied by a two-storey late 19th century warehouse building which formed part of the former brewery maintenance operation.
“This building is in poor condition, and has been subject to arson in recent years.
“The extent of the damage is such that the building will need to be demolished and the wall to the rear of the building reduced in height.”
Proposals for housing schemes on the site have previously been granted permission by Wolverhampton Council but have not materialised.
Planners said this development would help enhance the conservation area once completed and granted permission.