Leeds City Council's Plans Panel, which met earlier today, was mainly in favour of the proposals for 254 homes being put forward by Prospect Estates for the former ThyssenKrupp site.
It has been vacant since the German firm vacated in April 2016 after falling victim to the Boxing Day floods in 2015 and is fallen into a state of disrepair.
Under current plans, which are subject to change before a formal planning application is submitted, there will be four new buildings between four and nine storeys high.
Building works will be done in four phases and to combat the threat of flooding the basement car park will be constructed on stilts and the units will be constructed above the flood levels that were reached in 2015.
A spokesperson for the developers said: "We are not hanging about here. If we get approval we will be looking to make a start next year."