The council has agreed to transfer the former St Margaret's Primary School site to the Housing Service, which will see a mix of cottage flats and family homes developed by the local authority.
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The former school buildings which occupied the site were demolished earlier this year.
Planning and Regulations Panel Convenor Alasdair MacPherson said: "One of our key priorities is to build more social rented housing and this project will result in an increased supply of good quality, energy efficient housing that is affordable to households on low and middle incomes. We are committed to providing new homes for those who need them and I look forward to the project being developed."
(LM)
