Maurice Littlewood, Chair of Handsworth Forum, said the "dramatic" increase in traffic generated by a new housing estate, on the Finchwell Road area of Handsworth, would expose residents to dangerous levels of nitrogen dioxide.
He added that a planned relief road, between Highfield Springs and Woodhouse Mill, would not ease the congestion.
Mr Littlewood, aged 70, said: "The Sheffield Parkway is more like a car park at certain times of the day.
"When there are hundreds of cars stationary in one place, pumping out fumes, it will always cause problems.
"Darnall and Tinsley is usually seen as the worst area for air pollution but sadly Handsworth is badly affected too.
"This is affecting people's health and if the houses are built it will only get worse.
"I accept that you can't just wave a magic wand and make the traffic problem disappear but this road won't make any difference."
Mr Littlewood, who has been Chair of the Forum for four years, said plans to build 55 four storey flats on the former Handsworth First School site would add to the problem.
He added that UK Coal's plans to build 3,000 on the nearby former Waverley opencast site between Sheffield and Rotherham would greatly worsen the traffic congestion and pollution.
Mr Littlewood has spent the last 18 months monitoring air pollution at 18 sites across Handsworth, Darnall and Orgreave in partnership with the East End Quality of Life organisation and Sheffield Council.
He claims that although the average level of nitrogen dioxide meets the Government's targets, during some months it is excessively high.
High levels of Nitrogen dioxide is linked to increases in cancer and breathing problems.
Last November, nitrogen dioxide levels along a stretch of the Sheffield Parkway were recorded at 53 micrograms per metre cubed - 13mg higher than the Government's targets.
In December, 62mg per metre cubed were recorded in Greenwood Crescent, Darnall.
Others stations which have recorded high levels of nitrogen dioxide are: Handsworth Road, near Asda, St Mary's Church in Handsworth and Rotherham Road.
A council spokesperson said: "We did extensive consultation with local residents about the proposed houses.
"We did consider all the issues, including traffic and the effect on air quality.
"The over view was that the increase in car usage due to 300 houses would have very little effect on the air quality levels overall.
"Traffic and the effect on air quality will be amongst the issues considered when a planning application is made for housing at the Waverley development."