The proposal, which were granted subject to an S106 agreement, will see redundant academic buildings levelled for 287 new homes and six student accommodation blocks converted into apartments.
The existing playing fields will be retained and enhanced for University and community recreational use and will include a new sports pavilion.
There will also be a care home and neighbourhood shop as part of the development.
Architect Scott Brownrigg drew up designs for the project which is expected to cost around £30m to build with work due to start next spring.