Millions of pounds have been allocated by the government towards the infrastructure costs of building 290 new homes in Melton.
Homes England, a body which helps accelerates housing developments and local authority regeneration plans, will support the development of 290 properties on a site to the north of the town, close to the A606 Nottingham Road.
It relates to land at Sysonby Farm which is owned by Leicestershire County Council, which has submitted an outline planning application for the scheme to Melton Borough Council.
The money is part of a £13.2million funding deal with County Hall, with housing schemes in Lutterworth and Snibston in Coalville also set to benefit.
County council leader, Nick Rushton, said: “This is excellent news.
“Leicestershire is growing and planning ahead to ensure communities have the right roads and infrastructure in the right place is key.
“By bidding to Government to secure vital funds, we’re unlocking millions of pounds to invest in much-needed new homes, infrastructure and regeneration.”
Stephen Kinsella, executive director for land at Homes England, said: “This funding will enable Leicestershire County Council to accelerate their regeneration plans by enabling them to prepare these sites for development and bringing forward the construction of new houses.”