Telford & Wrekin bosses hope to attract affordable housing or a supported living scheme to replace the old Stirchley Leisure Centre which was demolished earlier this year.
The 1.1 acre site has significant strategic advantages and boasts close proximity to facilities including the Stirchley Centre, a school, leisure facilities at the Telford Park School, shops and a medical practice.
It's development will also boost other planned schemes in Stirchley including the former Swan Centre and the former Grange Park Primary School sites, both earmarked for residential development.
Telford & Wrekin’s cabinet member for economy, housing, transport and infrastructure Councillor David Wright said: “This site provides a real opportunity for a positive regeneration project for Stirchley and I am sure it will be well received by the market.
“It is great that the local area is set to benefit from new investment and potentially new jobs and I look forward to watching the new development take shape.”