The Stanley Arms on Lee Moor Road, Stanley, has been subject to residential applications over the years, but all have been withdrawn before a decision was made.
The latest, if approved, could see the existing building bulldozed and the land used to build the two-storey homes, with a mix of two, three and four bedroom homes.
A spokesman on behalf of the applicant, Berkeley DeVeer, said: “Despite strong efforts, the historic trading performance of the public house has resulted in closure. Based on historic trading performance, the long-term viability of the pub is highly questionable.
“The pub has fallen into disrepair and the replacement with a residential scheme would make a better use of this site.”