The partners aim to build 186 flats within a U-shaped finely detailed red brick building that rises to nine storeys.
The Cathedral One project site is bounded by Full Street to the west and the River Derwent to the east.
This last remaining parcel of land in Wilson Bowden's Full Street development area had been earmarked for an office development of up to 100,000 sq ft, but it will now be brought forward by Wavensmere Homes as an apartment block.
The Cathedral One plans include two communal staircases, courtyard car parking provision and secure bicycle spaces.
Nottingham-based Franklin Ellis Architects has drawn up plans for a red brick building, inspired by the traditional architecture and heritage assets within the vicinity.
In addition to the apartments, 2,000 sq ft of mixed-use space has been accommodated at ground floor level for a café and residential facilities such as a gymnasium and co-working zone.
James Dickens, managing director of Birmingham-based Wavensmere Homes, said: "This challenging brownfield site occupies one of the best locations within Derby city centre and benefits from rich views of the Cathedral Quarter and the River Derwent.
"It has been vacant for 10 years and the opportunity to create an exemplary development, reflective of the prime gateway location is exciting."
Wavensmere Homes has become one of Derby's most prominent residential developers, with the £175m multi-award-winning Nightingale Quarter becoming one of the finest regeneration and restoration assets in the region.
The former Derby Royal Infirmary on London Road, which had laid derelict for a decade, has been transformed into a community, including over 900 houses and apartments.
The developer has also submitted plans for the 11.5-acre historic Friar Gate Goods Yard in central Derby, which could be transformed into 276 houses and apartments, and over 110,000sq ft of commercial space.
Source; Construction Enquirer