The village, to be known as Heronby, was chosen as one of the three options for a major new settlement in the district as part of the new Local Plan.
The Local Plan is a vision for the future of the district until 2040 which includes “well-designed high-quality places to live with well-paid employment opportunities, an attractive rural environment and lower carbon emissions”, according to a council report.
The plan will deliver up to 386 homes per year and more than 12,300 full-time jobs.
Heronby will be based on a 173 hectare stretch of land to the south of Escrick Road in the village of Stillingfleet, with just under 1,000 homes estimated to be built over the plan period.
Land at the former Burn Airfield and a site at Church Fenton Airbase were also considered as locations for the new settlement.
Council officers believe Heronby is the most suitable site as it “will create a well-designed mixed community” ensuring that “the high-quality ambitions are met”.
Other major developments proposed are 945 homes to the west of Eggborough, providing housing for the new jobs that will be created following the redevelopment of Kellingley Colliery and the former Eggborough Power Station.
“It is recognised that the delivery of both Heronby and the expansion at Eggborough will be challenging as they require significant new infrastructure which will need to be delivered in a phased way to support new residents,” according to a council report on the plan.
Nearly 2,000 homes are also proposed around the town of Selby, including at the Rigid Paper mill, the Industrial Chemicals site, the former Ousegate Maltings and in Crosshills Lane.
The report added: “A heritage-led regeneration approach is proposed for Tadcaster which seeks to bring forward the re-development of the Central Area car park for new residential use, with replacement provision delivered through a new underground car park located underneath a new publicly accessible Town Green.”
A public consultation on the Local Plan is set to take place over a six-week period in late August, with a view to submitting it to the Secretary of State for public examination in February 2023.
Councillors on the executive committee in Selby will consider the Local Plan proposal at a meeting on Thursday (August 4).
Selby District Council will cease to exist in April 2023 due to the area being subsumed into the new North Yorkshire Council.
The council said it hopes the new council carries on its work on the Local Plan.
“Continuation of the work will have significant benefits for the new authority as a large amount of work and financial investment has already been undertaken to support the preparation of the plan to this stage and this is underpinned by robust evidence,” the Selby report said.