Cornovii, a firm set up by Shropshire Council to build homes, has requested permission to build a total of 135 homes on land to the north of London Road, near to Emstrey Crematorium.
The application is broken down into two parts – 103 houses, and 32 self-build and custom-build homes.
It will include 27 affordable homes, and an apartment block facing to London Road.
Planning officers are recommending the application is approved and members of the authority's planning committee will make a decision on whether to back the scheme on Tuesday.
A report prepared by council planning officer Shannon Franklin states: "The application seeks planning permission for a residential development to the edge of Shrewsbury equating to a total of 135 dwellings from one to four bedrooms.
"The application is submitted in hybrid form such that full planning permission is sought for 103 dwellings (27 affordable dwellings including shared ownership, 12 apartments and 65 Market Dwellings) together with the vehicular access from Pankhurst Way, internal roads, footpaths and cycleways, public open space, remediation, landscaping, associated infrastructure and groundworks for the self and custom build dwellings, and that outline planning permission is sought for a further 32 dwellings.
"The 32 dwellings subject to outline planning consent are to be 16 custom build dwellings and 16 self-build dwellings."
Part of the site is set in what is considered 'open countryside' and part has previously been allocated for housing in the local plan.
The report says the council has no concerns over the access to the site, with the road being part of the entrance to the Weir Hill development which is currently under construction.
The report states: "Insofar as Shropshire Council is concerned as the highway authority for London Road, the development raises no fundamental highway capacity or road safety issues.
"Pre-application discussions have taken place, parameters of the transport assessment have been agreed.
"The development seeks to provide the principle means of access to the site via the newly built spine road that forms the link road between London Road and Preston Street as part of the delivery of the Weir Hill housing development, currently under construction by Taylor Wimpey and Persimmon Homes.
"The spine road junction onto London Road is shortly to be adopted and provides a high order junction arrangement and is considered adequate to serve both the Weir Hill development and the quantum of housing coming forward as part of this application scheme."