Work over the next six years will see 198 houses and apartments built on the council-owned estate, replacing five tower blocks and which are set to be demolished.
Construction is expected to start this summer.
Cllr Gillian Campbell, Cabinet Member for Housing and Public Protection, said: “The skyline of Blackpool will change forever when the tower blocks are demolished but these plans show a much brighter future where people will be living in good quality accommodation.
“The development will also offer job opportunities for local traders and apprentices which are much needed in the current climate.”
Lovell regional director Nigel Yates says: “Our team has a strong track record in delivering high-quality, sustainable housing developments and we are proud to have been chosen as preferred developer for the new Queens Park.
“We believe it will set a new standard for well-designed housing in Blackpool, providing superb, contemporary homes for existing residents as well as attracting new people to the area.”