The former Wolverhampton Environment Centre site is to be transformed.
The land off Westacre Crescent currently consists of four large derelict glass houses, areas for plant growing and a bungalow, and is not viable to bring back into use.
The proposal is to develop up to 14 two, three and four bedroom homes on the parts of the site occupied by the derelict buildings, which make up less than 10% of the site.
This is expected to generate sufficient funding to improve the remaining 90% of the site for wildlife, which will be opened up to the public as part of the adjoining Smestow Valley Local Nature Reserve (LNR).
Councillor Peter Bilson, Deputy Leader and Cabinet Member for City Assets, said: "We have worked closely with the Tettenhall Neighbourhood Plan Steering Group and Finchfield and Castlecroft Community Association on this matter.
"The small mixed housing development will support local housing needs and will be designed sensitively to fit in with the surroundings.
"The vast majority of the land will be turned into a first class managed nature reserve for residents and the wider public to enjoy in line with the Tettenhall Neighbourhood Plan.
"But this can only be done with funding from the sale of the land for the small number of housing units which will also contribute significantly to the ongoing maintenance cost of the local nature reserve.
"Making the land a local nature reserve will doubly protect it against being built on by developers and preserve it for future generations to enjoy."
(CD/JP)
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