The home of the former Broadmarsh shopping centre has been left partially demolished since retail giant intu went bust in 2020 and the council took control of the site.
Homes England will now acquire land to the west of the Green Heart, a multi-storey car park, Severns House and a former college site.
It will now oversee completion of demolition and enabling works and look to attract private sector developers to transform the site.
Work will bring forward around 1,000 homes and up to 20,000 square metres of retail, office and community spaces.
Eamonn Boylan, Chief Executive of Homes England, said: “The acquisition of Broad Marsh is a major milestone in the city council’s vision of regeneration for this area of Nottingham.
“We have worked closely with the council since 2022 to provide professional advice and support. Now that we have acquired the site, our teams will be working with partners to attract the right developer to deliver the new homes, employment spaces and leisure facilities necessary to create a vibrant city centre neighbourhood that the people of Nottingham can be proud of.”
Councillor Neghat Khan, Leader of Nottingham City Council, said: “We know that people have wanted to see progress here for a long time and we understand that it has been a frustration for some that this hasn’t happened.
“We’re excited by the plans that Homes England has, and we look forward to working closely with them to bring these to fruition.”