A masterplan for 2,500 homes was approved by Wakefield Council bosses despite concerns over school places and funding.
The council’s cabinet committee voted to agreee “in principle” the £500m City Fields development, on the condition that elected members are consulted throughout the duration of the project.
Miller Homes are looking to build the homes, along with offices, shops and a school, on a site between Aberford Road and Doncaster Road.
A planning application for the first 500 homes was submitted earlier this year.
Cabinet member for children and young people, Coun Olivia Rowley, told the meeting she was concerned about the impact of the development.
She said: “In the main people are reluctant to support this, and it highlights how our need for additional housing is a real dilemma for us. I’m concerned that if a school is built, we’ll have to find capital for it before any section 106 money has come in.”
The scheme includes a new relief road with two junctions onto Aberford Road and a new roundabout junction.
Work is expected to start in the spring and it would create an estimated 3,200 local jobs.
Coun Rowley added: “It will hopefully relieve the problem that Aberford Road and Bar Lane are chock-a-block all the time.”
Stanley residents campaigned against the plans in the summer, claiming they would ‘decimate’ countryside.