Kirkstall District Centre has been derelict for more than 15 years, according to Leeds City Council, with only a small number of units occupied.
But Artisan Real Estate UK Limited wants to create 266 apartments and 35 town houses.
"We are very much looking forward to supporting the developers with an in depth public consultation and moving forward with a sustainable development for the area.”
The site was acquired by Tesco, which submitted a planning application in 2011.
According a planning report, the proposals had not been pursued and Tesco instructed agents to market the site for disposal because of changes in the retail sector.
Placed in Kirkstall Lane next to a busy junction and a leisure centre, the derelict brownfield plot is a common sight for motorists and the area’s residents.
The council has designated parts of the site it owns as “operationally surplus” to allow the plans to be developed.