It will breathe new life into the area, with the nearby former Royal Hospital building set to become a major feature, fronting a new public open space.
The proposed new buildings on the former bus depot site have been carefully designed in a clean modern style, to allow the elevations to stand the test of time and continually enhance the period architecture of the much admired hospital building.
The plans were submitted by developer Jessup and the designs drawn up by award winning architects, BPN.
The development will be a mixed use scheme, consisting of 74 apartments and 18 houses to be offered for sale. There is also a YMCA building including retail space, a training and office area, plus a day nursery. It will offer day care and education for up to 120 children aged from birth to 5 years, plus accommodation for young people working and studying in the city.
Homes England has made the development possible by buying the site and carrying out extensive works, including the demolition of the former bus depot, to make way for new homes close to the Metro system and the city centre.
City of Wolverhampton Council Deputy Leader and Cabinet Member for City Assets and Housing, Councillor Peter Bilson, said: "This is a major milestone in what is a very exciting project for the City of Wolverhampton.
"This is a strategically important site that is part of the £3.7 billion regeneration taking place in our city.
"The realisation of these designs will transform this area, bringing new housing, jobs and business - making the former Royal Hospital site a key gateway to the city centre.
"It is a critical part of how we are re imagining and reinventing our city centre, along with great connectivity, great public spaces, great new homes, a great leisure and sporting offer, vibrant events, outstanding arts and culture, and a thriving commercial district."
Jessup Managing Director, Clive Jessup, added: "Jessup are delighted to deliver this exciting development in the heart of the city using our local skilled tradespeople.
"It continues our relationship with Wolverhampton, which is providing much needed high quality homes in several locations across the city."