The application by Springfield Properties was in relation to its Dykes of Gray development, which is located to the west of the city.
The housebuilder had submitted two applications to create the village as it covers land owned by two different parties. In total, 595 homes could be built, but it is understood Dundee City Council has only approved half of the project.
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Sandy Adam, Chairman of Springfield Properties, commented: "This is a very exciting time for Springfield. We are delighted with the decision. We are looking forward to making a start on the development in early 2015 so that people in Dundee can benefit from our Springfield Choices and our unique approach to house building.
"This is a fantastic opportunity for Springfield, one we are very excited about. Whilst we are disappointed we didn't get planning for both applications, we are dedicated to working with Dundee Council to address points raised by the elected members and bring the full village planned for Dykes of Gray to fruition."
In addition to the two-, three-, four-, and five-bedroom homes, the stand-alone village would consist of open spaces, cycle routes and a multi-purpose play pitch.
(JP/CD)
