Working with Shepway District Council, the Defence Infrastructure Organisation has prepared plans for new housing over the next 20 years on the surplus brownfield land at the site.
Alongside the homes will be new community sports facilities, incorporating a new Army Cadet centre. There will also be a large area of public open space and improved education facilities.
The sale of land will raise cash for MOD to modernise the retained military estate.
Replacement facilities for the army will start to be built this year as part of a rolling programme of improvements at Shorncliffe and nearby Lydd Camp.
These will include more than 100 ensuite rooms for single service people. There will be modern office space for military and civilian staff, plus storage and training accommodation.
Brigadier Simon Wolsey OBE, Commander 2 (South East) Brigade, which is based at Shorncliffe, said: “This project is mutually beneficial in that it will see the disposal of unused land and outmoded buildings in order that purpose built modern accommodation can be provided for our personnel.”
Shorncliffe is currently the headquarters of 2 (South East) Brigade and home to 1st Battalion Royal Gurkha Rifles.
Peter Truscott, Taylor Wimpey South Divisional Chairman, said: “We are looking forward to working with Shepway District Council and DIO to create an exciting new community and deliver much needed new homes, supporting infrastructure and facilities to Folkestone.”