The Homes and Communities Agency lodged ambitious plans for the new neighbourhood, including a residential care home and a major link road, which were approved in outline at the end of last year.
The HCA is now hoping to have the site on the market this year. The agency said the mixed use scheme includes neighbourhood facilities, land earmarked for a park and ride and employment with potential to develop up to 200 jobs.
The 25-hectare site, between Eastway and D’Urton Lane, has long been earmarked for development.
Preston Rural East councillor, Neil Cartwright, said: “This has been designated for an awfully long time, so it’s no surprise. And it will result in the closure of D’Urton Lane as a through road, so the traffic problem will be eased.
“Everybody would like to see it stay as a green field open space, but it has been long expected.”
He added: “The HCA have done a very good consultation with residents, and there will be more consultation and decision as it progresses because this is just the outline.
“I am watching very closely how it develops and what proposals come forward, but it’s not something we can fight tooth and nail over. As long as the landscaping is done and there is plenty of separation from D’Urton Lane, it could look quite nice down there.”
The outline application for the Fulwood site was minded for approval by the city council’s planning committee, subject to a section 106 agreement.
Stuart Sage, Area Manager at the HCA, said: “The Eastway site has long been identified as having the potential for development so it is great news that the planning application has been approved.
“Longer term, this 15-year development will include new infrastructure to support the growth of Preston city centre and surrounding areas, bringing with it new jobs, enhanced communities and economic growth for Central Lancashire.”
He added: “We are currently finalising the legal agreement and are aiming to get the site out to the market later on this year.”
A housing development of up to 300 homes is set to be built on land off Eastway in Preston.