The Council has agreed that developers should be found to put forward proposals for a major overhaul of the Copley Close and Rectory Park (pictured) estates.
The areas were prioritised for action after a review of 34 estates in the borough showed they were in desperate need of improvement. Both estates are overcrowded and poorly designed, with low quality open spaces and green areas.
The redevelopment will aim to provide higher quality homes for both rent and private ownership. The scheme should also help prevent crime and anti-social behaviour by removing dark alleyways and unused paths.
Councillor Will Brooks, Cabinet Member for Housing, said: "Both these estates are crying out to be regenerated. They were built in the 1970s and are now out of date and need to be brought up to modern standards."
Work is now underway to decide what should be done to transform the Havelock, Allen Court, Dean Gardens and Golflinks estates which were also been prioritised for improvement as part of the review.