Land at Meadow Lane, near the city’s Aire Park development and the Adelphi pub, can be redeveloped after early-stage plans were drawn up.
Leeds City Council chose to sell the site, part of the South Bank area, to property company Glenbrook.
A planning application from the company proposed 246 mainly one and two-bedroom apartments in a development of up to 24 storeys.
A council planning officer’s report said: “The emerging proposals present a significant opportunity to regenerate a prominent vacant brownfield site within the city centre.
“The development would deliver a substantial number of new homes, alongside the provision of some employment opportunities.”
The report said pre-application discussions had been held with the council and architects since December last year.
Some 20 per cent of the new homes would be classed as affordable housing, rented out at 80 per cent of the private market rate.
Council bosses approved the marketing of the land in July 2022 and appointed estate agent Cushman and Wakefield.
A council decision report said: “It is surrounded by heritage assets in an area undergoing rapid regeneration and is widely considered to be a prime plot capable of supporting a high quality residential development.”