Leeds City Council's planning committee gave outline consent at a meeting last week for the community on 71 hectares of land next to the M1 motorway on the south-east edge of the city.
The project will see open spaces around the houses and community buildings such as a school and shop. Planners said the Aire Valley development aligned with emerging local planning policy.
Their report flagged up the regeneration would also include significant areas of green space and biodiversity habitat, most notably Skelton Lake. Sustainability measures will include creation of soft landscaped spaces and sports pitches and provision of water butts in the private gardens.
Due to the scale of the proposed development the scheme needs to have a phased implementation period of about nine years. The report concluded:
"The proposal would be of significant benefit to the wider area, creating much needed housing and employment opportunities as well as regenerating a former colliery site."
The application has now been referred to the secretary of state, according to Planning magazine.