Shropshire Council’s housing company Cornovii Developments Limited wants to build 40 new homes on the former Ifton Heath Primary School site in Ifton Heath near St Martins.
If the scheme gets the green light the site, in Overton Road, will be transformed to accommodate a mixture of two-, three- and four-bedroom houses, and one- and two-bedroom bungalows.
There are plans to offer 25 homes for sale on the open market and for 15 affordable homes to be provided in a mix of affordable rent and shared ownership properties.
Work would start early next year, with the first lots ready by autumn 2021.
Shropshire Council’s housing and strategic planning boss Councillor Robert Macey said: "This is great news for Shropshire as it will deliver much-needed new accommodation in the village of Ifton Heath.
"The designs that have been created will provide top quality sustainable homes that the community can be proud of.”
The council's place executive director Mark Barrow said: “This will significantly contribute to the council’s overall house building programme to build over 1,000 new homes in Shropshire by 2025, as well as supporting local contractors and supply chains during a difficult time for the industry and wider economy.”
The planning application will be submitted within weeks.
Ifton Heath Primary School closed in 2012 after a campaign to acquire academy status to keep it open failed.
Under the school closure proposals, pupils moved to a new all-through school at the village's Rhyn Park Secondary School under a council scheme to safeguard Rhyn Park and save money through 'significant economies of scale'.
Last October a travelling family who had been living at the site were granted permission to remain there for a further nine months while a new site was found for them.
The family's caravans had been in the grounds since 2015.