The council’s planning development management committee expressed a willingness to approve the scheme from Stewart Milne Homes, Barratt East Scotland and NHS Grampian, subject to conditions.

The approval is also dependent on the conclusion of a legal agreement to secure a 25 per cent affordable housing provision, of which 15 per cent will be on site – and developer contributions linked to primary education, and community, library, and sports and recreation facilities.

The legal agreement will also cover the creation of a ‘car club’ membership scheme for future residents of the development to mitigate a shortfall in parking spaces, and a developer contribution towards road junction works in the event that the development goes ahead before the planned Berryden Road corridor widening programme has been completed.

The plan involves the demolition of former hospital buildings to make way for 89 houses and 198 flats, and conversion of the five Upper Hospital buildings into 36 flats. Car parking, open space and new access routes into and out of the site will also be created. Extensive open space will be maintained in the site’s parkland setting.

Berryden Road is earmarked as the main access point into the site at a newly signalised junction, with a secondary access point on May Baird Avenue restricted to emergency vehicles, cyclists and pedestrians.

Committee vice-convener Councillor Andy Finlayson said: “We have waited a long time for an acceptable scheme to come forward for this site. City council planning officials have worked hard to negotiate the best possible scheme in terms of open space, layout, designs and affordable housing provision, and I am pleased that it is moving forward at last.”

The 5.54-hectare site, in the Rosemount and Westburn Conservation Area, lies between Berryden Road and May Baird Avenue and has lain vacant for some 12 years since being declared surplus to requirements by NHS Grampian.