Gateway, the pathfinder for Hull and East Riding of Yorkshire, signed the deal with developer Keepmoat to renew homes in the Newington and St Andrew's area.
The agreement focuses on developing a masterplan that will inform Hull City Council's area action plan. An application for 100 homes has already been lodged while one for 600 homes on a second site is due in 2009.
Keepmoat was named preferred developer in January. The firm plans to invest £100 million in the area over the next ten years.