Miller Homes will begin building up to 500 houses near Aberford Road as part of the City Fields redevelopment plan in the east of the city.
The first stage of the development will also include the construction of the first section of the £33m Wakefield Eastern Relief Road.
The 5 mile Wakefield Western Relief Road project will link the A642 Aberford Road in the north to the A638 Doncaster Road in the south and is due to start construction in April next year.
This paves the way for City Fields massive urban expansion plan to build 2,500 new homes over the next 15 years.
Councillor Denise Jeffery, Wakefield Council’s cabinet member for economic growth and skills, said: “The council is still very much committed to the City Fields development and we’re pleased that work will soon start on the first phase of houses.”
Tim Williams, strategic land manager for Miller Homes, said: “This marks a key milestone in a significant long-term urban regeneration project which will completely transform the area as well as creating substantial employment opportunities.”