BJD Investors and Developers plan to build circa 800 homes on the former DRI site in the heart of the city - as the Nightingale Quarter - has been approved by Derby City Council.
Work could start on site as soon as summer 2019 and would see the preservation of the two historic "pepper pot" buildings.
James Dickens, Founder of BJD, said: “We are delighted with the scheme over all. The mix of units and the retention of the heritage assets really does set the Nightingale Quarter out in front. This would not have been possible without the tireless work of the head of planning, the senior planner, conservation officer and local support from Marketing Derby and Russell Rigby from Rigby and Co."
The London Road site has been awaiting redevelopment since it was largely demolished in 2015.
Work could start as soon as this summer after the city council decided to approve the scheme which includes the preservation of two historic “pepper pot” buildings.
Pepper Pot 1 will be a community HUB encompassing a café, meeting rooms and visitors area and Pepper Pot 2 will be a fully fitted gym open to residents and the community.
In total, 796 homes will be created. This includes the building of 773 new homes, while the remaining properties will be created by converting existing buildings, including Wilderslowe House and properties in Osmaston Road.
John Forkin, Managing Director of Marketing Derby, said: "This is a really important step in bringing forward development of one of the largest city centre residential sites in the country. We have been working very closely with BJD Investors and Developers to ensure a smooth landing in the city. The Nightingale Quarter is a massive investment that will quickly become a desirable residential location in the city centre providing 796 much needed homes. We all have personal memories of the DRI and I look forward to seeing this important part of Derby's past becoming a vital community asset for its future."