Phase 11 of the development will be built on fields off Station Road, Martingale Way, Huntginton Drive and Concorde, if permission for the work is given.
It will also include public open space, associated infrastructure and landscaping.
But Telford MP Lucy Allan said the constant development is disrupting the lives of those living in the area, and likened the landscape to a war zone.
We can’t cope with more development in Lawley Village just now. It’s all happening at once - it’s like a war zone. https://t.co/ybiP8VkNSA pic.twitter.com/6lDwqIN4FW— Lucy Allan MP (@lucyallan) January 23, 2020
She called for the development to be postponed until current work is completed.
“Lawley Village development is supposed to be executed in carefully planned phases," she said.
"However, it is being overwhelmed with multiple phases being executed simultaneously. Major earthworks are taking place in multiple areas, with mud, dust, heavy lifting trucks, vibration and noise disrupting the everyday lives of residents, workers and anyone trying to use local facilities.
"This is untenable and the area cannot cope with yet another phase of work beginning before existing phases are completed. I am seeking a meeting with developers to make the case for residents in the area.”
Ms Allan tweeted: "We can’t cope with more development in Lawley Village just now. It’s all happening at once – it’s like a war zone."
The development, if it is given the green light, will include 121 two-bedroom houses, 321 three-bedroom homes, 139 four-bedroom homes and 19 five-bedroom homes.
In their application, developers Origin3 said: "The vision for Lawley Phase 11 is to deliver part of the Lawley urban extension residential community that meets the needs of both existing and new residents.
"It forms part of a series of walkable neighbourhoods and will have a flexible range and choice of dwellings that respect the surrounding landscape and reflect the best local examples of buildings and places.
"The majority of the proposed dwellings are designed to be smaller family homes of two and three bedrooms, with just under a quarter of the total provision as four-bedroom homes."
Phase 11 of the work is located in a flood zone, and developers said appropriate drainage would be built as part of the work.
A public consultation on the plans was carried out in September last year. Comments included concerns about the density of the hours, the loss of open space and the impact on traffic.
As a result, developers made several changes to the plans including an increase in tree retention at the southern side of the site.
A circular ring of trees used as a common garden will be retained as part of the plans.
A decision on the plans will be made by Telford & Wrekin Council in the coming months.