Dublin city councillors have voted to rezone land at a waste depot in the Liberties for housing and sports facilities.
Assistant chief executive Richard Shakespeare said further consultations will take place on the extent of the development before it goes ahead.
The council's plan was to consolidate local waste services at the Marrowbone Lane depot but to reduce its size by 45% by moving out other services.
This would have freed up land for 100 units of social housing as well as all-weather playing pitches for the local community.
However local councillors said at a monthly meeting that they wanted more sports facilities, including a full size pitch and more housing instead of retaining the depot.
The council's report said the preferred option was to consolidate five local depots at Marrowbone Lane as it meant waste services were close to where demand was greatest in the city centre and south city.
Land for another 200 units of social housing would be made available by consolidating the other depots at Marrowbone Lane, it stated.
Many local residents objected on the basis that more green space is needed in the area. One submission had 878 signatures.
But the council report stated that four hectares of parkland are already being added to the Liberties.
The report also states that the population density of the Liberties is 122 people per hectare compared to 184 per hectare in the Docklands Strategic Development Zone.
Mr Shakespeare said the council will look at putting green spaces on roofs of the new development.
