Developers St Francis Group submitted plans
 to Wyre Forest District Council for the Stourport Road site in April.
The first phase of the plans includes 200 homes, a care home, medical centre, hotel, shops and restaurants.
A spokesperson for the project, called Silverwoods, said building work is likely to start next year.
The second phase would include more homes and the construction of a link road in the town to the Worcester Road, the spokesperson said.
The developers bought the former sugar beet processing and production plant in 2006. British Sugar closed its Kidderminster operation in 2004.
All the buildings on the site have been knocked down apart from 70 metre (230ft) twin silos, which will soon be demolished.
The redevelopment is part of the South Kidderminster Enterprise Park.
Plans to redevelop the former British Sugar factory site that could create more than 400 jobs in Worcestershire have been approved.