Planners have been recommended to approve a bid to build 50 homes in Wisbech St Mary.
M Grange is looking to construct a mixture of terraced, semi-detached and detached homes on land north of Orchard House, High Road.
But the application is being opposed by Wisbech St Mary Parish Council which has concerns about flooding.
Fenland District Council’s planning committee has been recommended to approve the application at their meeting on Wednesday next week.
A report to the committee meeting states: “Wisbech St Mary is a growth village where small village extensions can be considered on their merits.
“The development of this site will result in some encroachment into the open countryside, beyond the existing developments around the site.
“However, the scheme brings with it significant benefits by virtue of it providing sustainable development resulting from Section 106 contributions of affordable homes, provision of public open space, education and waste contributions and contributions towards the NHS.
“It is considered that the contributions resulting from this development outweigh the impact of the development on the open countryside and the development would result in benefits to the sustainability of the area through these contributions. As such they are crucial to the acceptability of this development.”
Four letters of objection have been made.