Southampton City Council has named housing provider Abri as its preferred partner to build affordable homes in Townhill Park.
As part of a wider plan to regenerate the area, the council will transfer designated land to Abri to provide up to 189 homes.
The first plot includes parts of Benhams Road, Meggeson Avenue, Hallet Close, and Cutbush Lane.
The second plot includes Meggeson Avenue shops and residential areas, with plans for a new convenience store and community café.
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These developments are the first to be unveiled under the council's Affordable Housing Framework, which aims to increase the number of affordable homes in the city.
Councillor Lorna Fielker, leader of Southampton City Council, said: "The appointment of Abri to build new homes at Townhill Park is not only a huge milestone for the Affordable Housing Framework, but also for the Townhill Park Regeneration Programme.
"The Affordable Housing Framework will help the council achieve its commitments to delivering good-quality, affordable housing for our residents to live comfortably and thrive."
Sam Stone, director of land and planning at Abri said: "Abri's committed to providing safe, sustainable and affordable homes.
"As the preferred bidder we look forward to working closely with Southampton City Council and the local community to bring forward these new homes.
"Over the coming months we’ll be listening to feedback from local residents as we start to progress the detailed designs to ensure the homes meet the needs of everyone living in the local area."
The framework enables the council to utilise its own land to meet the growing demand for affordable housing in Southampton.
The plan includes developing social rent, affordable rent, and shared ownership properties to assist people in accessing the housing market.
The broader regeneration initiative in Townhill Park aims to replace outdated council housing with over 600 new energy-efficient homes.
The council has also sought proposals for a registered provider to construct new affordable homes on two more plots, with an appointment expected in early 2025.
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