The government has agreed another £14m of funding into the South Tees Development Corporation to get work underway.
The 350 acre site in Redcar was home to the former Sahaviriya Steel Industries plant.
The land is set to be transformed and made ready for development in a bid to attract over half a billion pounds of private sector investment.
Work to establish construction access and utilities, a new spine road and roundabout is set to begin in the first quarter of 2019 with new commercial tenants on the site expected from 2021.
Local contractor Hall Construction Services has bagged the first job for £1m worth of road improvements.
Northern Powerhouse Minister, Jake Berry said: “Our investment of £14m into this site will help transform this derelict piece of land into a burgeoning new industrial quarter, which is expected to create 500 new jobs and attract an extra half a billion pounds of private investment.”
Tees Valley Mayor and Chairman of the South Tees Development Corporation, Ben Houchen, said: “Government has committed £137m to the Development Corporation over the last year, and this latest £14m funding is vital to kick-start immediate work to redevelop land to help spearhead the transformation of the area.”