Site surveys and investigations are under way on the Heath Town estate ahead of ENGIE preparing to start construction work in June.
It will see a mixture of 40 two-bedroom and four-bedroom houses built on three sites on Hobgate Road and one site on Tithe Croft, off Chervil Rise.
The move marks the first phase of a scheme which will see up to 200 new homes built for rent and sale on the estate over the coming years.
Councillor Jacqueline Sweetman, cabinet member for city assets and housing, said: "It’s great to see ENGIE on site this week carrying out the essential surveys and investigations. The development on the Heath Town estate will bring a real change to our city.
"The new homes will offer a wider choice of quality housing for our residents and I am pleased that we have a summer start date for this major development programme for Wolverhampton.
"I look forward to the first bricks being laid and seeing the brand new development offer a welcoming home for many people."
Wolverhampton Council is set to develop nine sites on the estate in total, following on from the demolition of vacant buildings as part of a multi-million pound transformation of the site.
It has seen existing residential blocks undergo major improvements by Wolverhampton Homes, and the creation of three new play areas and a football pitch. All of the new homes will have their own car parking space provided and the majority will come with gardens. This first phase of the new development is due to be completed by Autumn next year.
Lee Stoneystreet, regional director at ENGIE’s Places and Communities division, said: "We are pleased to be continuing our successful partnership with Wolverhampton Council, following on from our recent completion of 40 new affordable homes at Burton Crescent.
"We are really looking forward to bringing our expertise to this development and creating a community that local people can be proud of."
Other completed works as part of the development include the demolition of walkways and garages in the Hobgate Road area of the estate, the disconnection and re-routing of 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 Hope Family Centre.