More than 900 new homes could be built on the site of the former Glass Houghton Colliery as plans to regenerate the area continue.
The proposals are part of the £4m Glass Houghton Southern Link Road, which would run from Flass Lane to Colorado Way.
Wakefield Council is expected to begin assessing the feasibility of the project next month.
If the road is approved, planning applications would then be submitted for the housing.
Coun Denise Jeffery, Wakefield Council’s deputy leader and cabinet member for regeneration, said: “This is a fantastic scheme for Glass Houghton and Castleford.
“Housing is at the heart of regeneration. Building new homes brings new people into the town.
“They bring wealth and they contribute towards the economy.”
The link road, would be funded by the West Yorkshire Combined Authority as part of £1.4bn worth of transport improvements across the county.
If approved, it would be completed by 2021.
The proposals come a week after the government said it did not need to call in the £135m Five Towns Park development at Glass Houghton.
Work is also being carried out to build homes on the former Hickson and Welch chemical works, on Wheldon Road and the former Lambson’s Chemical Works in Castleford.
Coun Jeffery said: “This scheme, along with the Five Towns Park development, is great for the area.
“There are also the other developments in Castleford and they will really help transform the town.
“All of these people that are going to be coming and living in the area will be paying rates and they will have a wider range of shops to go to and, most importantly, will be spending money in the local area.”
The changing face of Glass Houghton and Castleford ...
- The transformation of the former Glass Houghton Colliery began in October 2003 when the Xscape entertainment complex opened.
- The Junction 32 Outlet Shopping Village was originally called Freeport,
- A B&Q store, a hotel, a pub and fast-food restaurants have also been built on the site.
- There is also an Asda supermarket, a Wakefield College campus and a railway station on the site.
- Wakefield Council also announced its Castleford Growth Plan which will see £44.5m of investment pumped into the area.
- The plan includes a new link road from Aire Street to the former Fryston Colliery site on Wheldon Road as well as £4.5m worth of improvements in the town centre and thousands of new homes.