Three hundred new homes could be built in Chesterfield as part of a major masterplan.
The 37-acre site at Linacre Road will be put up for sale by Chesterfield Borough Council in the autumn.
Councillor Terry Gilby, the council's deputy leader and cabinet member for planning, said: "Once we have agreed a sale, the housing developer would need to make a planning application to put forward detailed proposals of the type and exact number of houses they would want to build."
Members of the public would have the opportunity to comment on any future planning application.
If planning permission is given, it is expected work could start on site in summer 2018.
Coun Gilby added: "As with all developments of this type, we will be seeking for up to 30 per cent of the housing to be affordable homes.
"Developers would also have to make a payment which will contribute to the cost of providing school places, playgrounds or green spaces or other community needs generated by a development like this."
The council needs to provide sites for 380 homes each year to meet the demand for new housing.
"Not all the housing can be built on brownfield or previously used sites," Coun Gilby said.
The Linacre Road land was originally bought by the council in the 1970s.
For more information about the development, visit www.chesterfield.gov.uk/linacre-road