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City of Wolverhampton Council has developed a Masterplan to transform the estate, which will bring new housing, refurbished homes, and improved leisure space.
The tender process for a preferred developer is in its early stages with developers due to meet council representatives to help steer their proposals.
A selected number of developers will be asked to present their designs at a residents' exhibition for comments and feedback.
Details for the exhibition will be sent to all Heath Town estate residents when a date is set, and City of Wolverhampton Council hopes to appoint a developer by spring 2017.
Councillor Peter Bilson, Deputy Leader and Cabinet Member for City Housing and Assets, said: "The Heath Town community deserve a modern, open and better quality place to live - and it is important they have their say on the future of the estate.
"The Heath Town regeneration project will transform the area over the next few years.
"Demolition works are gathering pace and there has been positive interest from a number of respected developers.
"We appreciate redevelopment won't happen overnight but people can now see progress is being made."
Phase 1 of the demolition works is underway, with linked walkways, a small number of garages, disused garage court, and an empty leisure building to be cleared by March 2017 to make way for new houses.
Phase 2 focuses on Chervil Rise and enabling works on this part of the estate are anticipated to start in spring 2017, with demolition scheduled to commence towards the end of 2017. The demolition will comprise 36 maisonettes, the shopping precinct including various offices. Also included are garages, the disused underground car park and disused gym.
- released: Thursday 17 November, 2016