Plans for dozens of new houses in Gosforth are set to be decided by Newcastle councillors on Friday.
Lok Developments is behind plans to build 37 new homes at the former Sanderson Hospital site.
The Newcastle firm is buying the site from Newcastle upon Tyne Hospitals NHS Foundation Trust and plans were submitted to Newcastle City Council last year.
If the plans are given the go-ahead, Lok will build 23 houses made up of 13 detached and 10 town-houses and 14 apartments. The apartments will be two-bedroom apartments in two separate blocks containing seven flats each.
A planning statement submitted to the council on behalf of the developer by Curtis PDC said the homes were much needed in the area.
It said: "The site is in a sustainable location, is previously developed land and is in an area of very high housing need. On balance, the benefits of delivering housing on this site outweigh any harm caused."
The plans come after the freehold of the site was put on the market, following the collapse of a joint venture between the hospital trust and Newcastle care, leisure and property firm Malhotra Group, which had been working together on plans to create a health facility on the site.
Sanderson Hospital was built in 1897 as a home for destitute children before being occupied as a care facility for the elderly.
Construction firm Wimpey had received planning permission to build houses and flats on the sites in 2011, despite huge numbers of protests that led to its plans being revised a number of times.
Wimpey pulled out of the scheme in 2013, saying a slump in the property market during a lengthy planning battle had made its development uneconomical.
Newcastle City Council's planning committee will vote on the scheme on Friday.
