The lease is due to expire in 2026, and the racing track operator plans to move to new premises at Monmore Green in Wolverhampton.
A spokesman for Corbally Group, said: “The current site offers little in terms of wider community value and we’ve worked closely with the racetrack operator to support its move to new premises within the region.
“We have developed an exciting scheme, which not only delivers new homes but will create attractive new public spaces and unlock access to the river front.”
The proposals include a range of public and private gardens, play areas, and interactive playgrounds to promote positive wellbeing and healthy lifestyles.
The plans will also support sustainable long-term growth in Perry Barr by opening the River Tame with a new, biodiverse riverside park which will be open to the public.
Riverside link
A planning application is currently being prepared and is set to be submitted in the coming months.