The initial plan is to build 213 homes, including 77 houses offering three to five-bedroom family living, designed by architect Feilden Clegg Bradley Studios.
Just north of the river, twin nine-storey apartment blocks, designed by Cartwright Pickard, will also be built.
These buildings will provide 136 flats with 1,350 sq m of leisure and retail space on the ground floor, set around a new public plaza and pocket park.
Council officers have recommended approval be granted and work is now expected to commence later this year on the £25m project.
James Shimwell, Head of Residential Development at CEG, said: “The redesigned apartments mean we can deliver tailored build for rent apartments, managed by the Forge Life on-site team, which will bring new residents onto site very quickly.
“By including shops, leisure facilities and food and drink outlets on the ground floor, set around a public plaza and pocket park for pop up events, outdoor screenings and exercise classes, it will bring even more vitality to this exciting development.
“Through the consultation we’ve had some great feedback and look forward to progressing the next phase.”
Turner & Townsend is cost consultant, WSP is structural and Hoare Lea M&E consultant on the scheme.
The 57-acre site is already home to the Number One Kirkstall Forge offices and Butler’s deli restaurant, a new railway station and two prototype homes.
The success of the first 110,000 sq ft commercial development has CEG fast-progressing the detailed design for the next phase of offices.
Ultimately, Kirkstall Forge will provide up to 1,450 new homes, 300,000 sq ft of offices and 100,000 sq ft of retail, leisure and community space.