A company has submitted a third planning application to build houses on the site of the former Middleton Hospital.
Clays of Addingham are hoping a deal with Harrogate planners can be struck before a public inquiry into the application in February.
That inquiry centres on an original planning application to build 103 houses on the site.
For technical reasons, Harrogate planners have not been able to rule on the plan but they have already stated they would refuse it.
The Department of Transport has issued an order stopping councillors dealing with the plan until Government officials have studied its impact on traffic. The public inquiry was due to take place next week. However, it was postponed and should now take place in February.
Clay's second planning application reduced the number of houses to 78.
This was more in keeping with the original planning brief for a Dales-style village on the 22-acre site.
The latest planning application, an outline application for residential development, is also expected to be greeted with widespread objections.
Members of Harrogate planning committee are to discuss the latest planning applications next month.
They have withdrawn the original planning brief but consultants working for Clays will argue its proposals are still relevant to the latest scheme.
The site is owned by the Durham-based National Health Service Executive which expects to make around £20 million if the developers get the go-ahead.
The site has been derelict since 1991 when almost all of the original TB sanatorium buildings were bulldozed.
Campaigners against development have argued it has become a haven for wildlife and a sanctuary for birds.
Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article