The building contractor is due to start work on site in summer 2021, following the submission of a planning application later this year.
It will form an extension to the existing Winnall Flats site on the outskirts of the city.
This currently houses four blocks of flats comprising 156 homes of which around 25 have been sold as leasehold and the remainder are council-owned, rented at social rents.
Wates Residential and the council plan to build a further 35 homes, designed for local people to purchase through shared ownership.
A further 41 homes will be developed for sub-market or affordable rent.
Lee Bushell, Operations Director for Wates Residential, said the scheme would be built to AECB standards which means the homes will be designed to have such a low heating demand, that there is no conventional heating system required.
Using the AECB methodology also means that there will be a 41% reduction of energy use and carbon emissions across the entire scheme.