Work will begin in August on the first phase of a multi-million pound development on the east side of the city.
Developers Miller Homes Limited will start building 329 news homes near Aberford Road as part of the City Fields masterplan.
The scheme is one of the biggest regeneration initiatives ever seen in the city and is expected to attract thousands of new jobs and £500m of investment.
The work comes after Wakefield Council’s planning committee granted outline permission to build 500 homes at the site last year.
It could eventually lead to more than 2,500 homes being built.
The City Fields scheme also includes building the Eastern Relief Road, which was approved last December.
The road will link the A642 Aberford Road and the A638 Doncaster Road, with a connection to Ferry Lane in Stanley. It is hoped the by-pass will help ease congestion.
The City Fields scheme was masterminded by planning consultants Spawforths and will be delivered in partnership with Miller Homes Limited, Grantley Developments Limited and Stretton Estates, bringing with it 3,200 jobs.
The development, which could take between 10 and 15 years to complete, could also include new offices, shops, industrial units, a school and a waterside park.
Coun Denise Jeffery, Wakefield Council’s cabinet member for economic growth and skills said: “City Fields is an exciting and ambitious scheme which will create a brand new community in Wakefield.
“It will not only enable the building of new houses, but also open spaces, accommodation for businesses, and everything else a community needs to be sustainable and inclusive. It will also create hundreds of jobs and open up land next to the river and canal.”