The outline proposals lodged by developer Lands Improvement would see the residential scheme built on 8.89 hectares of currently vacant land off Loverose Way, between the football club and the A5.
If approved, the scheme would comprise 136 open market dwellings along with 32 houses offered for social rent, with a further 58 properties available as shared ownership schemes.
The site had previously been earmarked for commercial use as part of the south Shrewsbury “Sustainable Urban Extension” planning policy, which proposed its use for “business, office and light industrial space” along with “potential for hotel, pub/restaurant and similar uses in the vicinity of the football ground”.
Planning permission was granted for a commercial scheme on an adjacent 11 hectare parcel of land, known as Stadium Point, earlier this year.