Plans for 58 new houses and a care home at Slyne could get the go-ahead on condition that developers pay towards a new primary school.
The Taylor Wimpey scheme earmarked for fields off Lancaster Road and next to Turnpike Fold has been recommended for approval by Lancaster City Council planning officers.
The proposal is to build a mixture of two, three and four-bedroom houses, as well as a care home with up to 60 beds and a local centre which could include a coffee shop, pharmacy and community space.
A final decision on the application is expected when Lancaster City Council planning regulatory committee meets this coming Monday (October 9).
Taylor Wimpey is asking for outline planning permission on the care home, which is expected to be a maximum of three storeys.
Planning officers have recommended that the overall scheme be approved subject to conditions.
These include a legal agreement and a financial contribution towards a new primary school in the area.
The council has also asked that concerns over the potential for extra traffic in the area be resolved to the satisfaction of the Highways Authority, as another condition of planning permission being granted.
The site, which is close to the Bay Gateway and existing houses on Turnpike Fold, has been identified by Lancaster City Council as available for residential development of up to 700 homes.
The council's planning regulatory committee - made up of a group of elected councillors - will meet to discuss the scheme on Monday at Morecambe Town Hall. The meeting starts at 10.30am and is open to the public.