Developers are looking to build a total of 144 houses and 97 apartments on the Wedgwood Gardens site off Bottleslow Street, Hanley.
The site, which ran as Johnson Brothers pottery factory until 2003, is considered a key regeneration area in the city centre where hundreds of homes have already been built.
Permission to build on the land – which still contains a pair of Grade II-listed bottle kilns – was granted by Stoke-on-Trent City Council in May 2005. However, the application was never implemented.
Now the revised plan would also see new link roads and a park created.
The proposals form part of a long-term project where a new primary school, health facilities and community centre will also be built to compliment the expanding estate.
However, residents living in neighbouring properties have voiced their concerns over the size of the planned development.
Kevin Swaby, of Rosedawn Close West, said: “We were originally told any more developments would only come so far and not as close to our property as the plans show.
“I would rather see more green space than more houses.”
His wife Kerry said: “If they put a footbridge to lead to the development that will be very close to our house and it could become a meeting point for youths.”
Other families backed the plans, claiming they were tired of looking out on a “wasteland”.
Father-of-one Chris Wright, aged 30, also of Rosedawn Close West, said: “A park would be nice for the children and it should raise the profile of the area.”
Rob Smith, aged 24, of Rosedawn Close East, said: “I think it depends on what the houses look like and if they are in keeping with the area as it is.”
Nearby businesses have given the thumbs up to the proposals.
Sid Cartlidge bought the Botteslow Arms pub in Leek Road and transformed it into Sid’s Hairdressers after his original base of 26 years in Bucknall New Road fell inside a clearance area.
The 71-year-old, from Lightwood, said: “From a business point of view it’s good news as I have to see each one of the new homes as a potential new client.
“Since we moved down here we have found our customers have followed us.”
Mandy Hemmings runs the MandaLouise Salon from a room in the former pub which she rents from Sid.
The 37-year-old, from Longton, said: “I think it’s a brilliant idea and it’s good news for me as a new business.”
The plans, which have been put together by Newcastle-based John Rose Associates and Leek-based CTD Architects, claim the new development will help enhance the area.
It states: “The core concept of this proposal is to create an environment for living of distinctive character that will support a sense of pride and identity.”