Plans to build up to 160 affordable homes in the Roberts Lodge area of Tweedmouth are expected to go before council planners this spring.
It is anticipated that 42 units, costing nearly £6 million, would be developed during the first phase of the scheme.
If approved, work could start by the autumn with completion by summer 2015.
A report to Northumberland County Council’s north area committee reveals that the Tweedmouth site would be funded through General Fund borrowing and therefore cannot legally become council housing.
The council will therefore lend the cost of building these sites to a housing association which will be repaid back to the council.
It is currently planned to build a mix of eight single bedroom apartments, four two-bedroom bungalows, 22 two-bedroom houses, four three-bedroom houses and a quartet of four-bedroom houses.
However, the property mix is still subject to change as further work is needed before the planning application is submitted.
Carla Keegans, head of housing, said: “This is a large site that will need to be developed in stages.
“Stage one would be 42 units, with up to 160 homes being possible on this site, depending on future council plans for Berwick, which could include mixed tenure.”
A further feasibility study and business case will be produced for phase two later this year.
The scheme is part of a plan to deliver more than 2,000 new affordable homes across the county in the period up to 2018. Roberts Lodge is one of seven development sites identified, six of which are in the north of the county.