Barratt has won a £125 million contract to develop a Greenfield site in Pan, Newport, with the Isle of Wight Council and Western Challenge Housing Association.
The first phase of the project is scheduled for delivery by March 2016 and includes the construction of affordable and private housing, as well as infrastructure for the whole development including the spine road, biomass facility, country park and ranger station.
The housebuilder has also won the second lot of the contract covering the second phase of the project, which will see the remainder of the site developed.
The Pan Development Programme has been ear-marked funding from the Homes & Communities Agency for 240 of the 254 affordable housing units to be built.
Miller Homes, Persimmon and Redrow are all believed to have placed initial bids for the project.