Forty of the units will be council homes for rent, with the remainder to be sold as market housing.

Bouygues UK beat off the competition to win the contract for the former Armitage Shanks Tap Works Factory site, as well as land on Fifth Avenue and Broome Road.

The factory on Showell Road closed its doors in 2007 and has since been demolished.

Construction is expected to start in the last quarter of this year, with the council homes set to be completed within two years. The market housing for sale is expected to be completed within four years.

Councillor Peter Bilson, Deputy Leader and Cabinet Member for City Housing and Assets, said: “As part of regeneration plans for Wolverhampton, a target of building 13,400 new homes across the city between 2006 and 2026 has been set.

“This project supports the house building programme and will deliver quality homes for all.”

The council homes will be managed by Wolverhampton Homes

Craig Tatton, Chief Operating Officer at Bouygues UK, said: “We are committed to delivering the maximum benefit to the community from this project by engaging with local suppliers, residents and training providers to offer new employment and upskilling opportunities through our National Skills Academy for Construction.”

The project will comprise a mixture of one, two, three and four bedroom properties; consisting of apartments, houses and bungalows.

Plans have been produced by urban designers and architects at IDP, a leading multi-disciplinary design consultancy based in Coventry.