Energy and regeneration specialist ENGIE will be building a mixture of properties on land off Burton Crescent and derelict land adjacent to St Stephen's Church.
Work on the homes, which will all be available for affordable rent, is due to start this autumn.
The development programme is expected to last around 18 months and when completed will be managed by Springfield Horseshoe Housing Management Co-operative.
Councillor Peter Bilson, City of Wolverhampton Council Deputy Leader and Cabinet Member for City Assets and Housing, said: "This is a major milestone in moving this redundant site forward as we aim to meet increasing housing demand.
"The funding for the development of these homes will come from the council's Housing Revenue Account. Grant Funding has also been secured from Homes England to help towards the cost of construction.
"One of our key priorities is to increase the number of decent, high quality energy efficient affordable homes available in the city. The tenants in these properties will definitely benefit from that, access to local amenities and a garden space.
"To mitigate for the loss of the former football playing fields off Burton Crescent, the nearby open space at Grosvenor Street in Heath Town will be improved and a 7 x 7 sports pitch (60yd x 40yd) will be provided. This is in addition to an upgrade to a neighbouring play facility at Burton Crescent that has taken place in recent years."
Paul Clarke, Regional Director at ENGIE, said: "We're really proud to have been chosen to develop these much needed homes in the city.
"The UK's shortage of high quality, affordable new homes is high on everyone's agenda, so we're delighted to be working with our partners to create a sustainable community that local people can be proud to call home."
The development includes 6 one-bedroom flats, 5 one-bedroom bungalows, 6 two-bedroom bungalows, 16 two-bedroom houses, 4 four-bedroom houses and a supported housing unit of 6 one-bedroom flats.
The project is part of the wider plans to regenerate the city and increase the number of decent and affordable homes in the City of Wolverhampton.
- released: Friday 29 June, 2018