Blackburn with Darwen Council is to sell almost 14 acres of farmland it owns near a South Ribble village for housing.
Its ruling executive board will on Thursday be recommended to approve the deal to pave the way for 121 new homes at Mellor Brook.
The proposal follows an informal tender exercise which attracted the interest of 14 developers.
The senior councillors are recommended to appoint Liverpool-based Prospect Homes as the preferred bidder for the site.
A report to the executive board by growth boss Cllr Quesir Mahmood says: "This report outlines the outcome of the informal tender exercise for the sale of council owned land at Branch Road and Myerscough Smithy Road, Mellor Brook.
"The land is located in the district of South Ribble Borough Council and is owned by Blackburn with Darwen Council and had been previously let under an agricultural lease.
"The Mellor Brook site is of 13.89 acres and is allocated for “Village Development” in the South Ribble Local Plan.
"The council submitted a pre-planning application to South Ribble and received positive feedback.
"An informal tender exercise was undertaken over the summer with 14 bids received from developers.
"The executive board is recommended to approve the appointment of Prospect Homes as preferred bidder.
"It is recommended to authorise the growth programme director to finalise and complete the terms of the disposal.
"The land is currently used for agricultural purposes and not used as open space.
"Myerscough Smithy Road is linked to the A59.
"The site comprises a linked series of fields contained by hedgerows and hedgerow trees.
"There are field ponds at a central position on the site but otherwise the site is used for pasture.
"The application was received favourably by South Ribble as proposals outlined a mix of housing for market sale together with affordable rent and share ownership tenures.
"Prospect Homes proposed a scheme of 121 homes and presented the highest value bid.
"Prospect Homes is an established housing developer which is wholly owned by the Riverside Group Limited housing association based in Liverpool and manage more than 75,000 homes across England and Scotland.
"Analysis of recent land sale transactions of similar size and density across the region highlights the offer from Prospect Homes represents a significant bid and demonstrates the council will have achieved best consideration by disposing of the Mellor Brook site for the offered amount.
"Payment will be received in two instalments: five per cent on exchange of contracts and per cent on legal completion which is estimated to be achieved late 2024."
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