The development will be delivered by South Lanarkshire Council and homelessness charity Social Bite on the site of the former Westfield Saw Mills in Harriet Street, Rutherglen.
The village will be made up of 16 sustainable modular homes, called Nest Houses, created by Scottish PropTech company Ecosystems Technologies.
Each home will have its own lounge, kitchen, bedroom, and shower room, as well as its own landscaped area.
READ NEXT: We have opened a pop up after rents tripled forcing us to close in West End
There will also be a community hub on the site with a lounge and kitchen for therapeutic group work.
The village will be run by a specialist housing support provider to help residents prepare for living independently.
Councillor Davie McLachlan, chair of the housing and technical resources committee, said: “I’m delighted that this has been agreed today as it will help the delivery of the council’s homelessness strategy.
“Social Bite have a proven track record of delivering similar projects and we look forward to working in partnership with them.
“The site has been designed to ensure that it will integrate with its wider surroundings, is sustainable and can provide a range of services.
“It was great to see that the project received the unanimous backing of the planning committee as well as the housing and technical resources committee.”
Social Bite is a homelessness charity known for its innovative projects to tackle homelessness in the UK.
Founder of Social Bite, Josh Littlejohn MBE, said: “It’s brilliant to see this project move forward with the approval of planning permission from South Lanarkshire Council’s planning committee.
“At Social Bite, we believe that everyone deserves a safe and supportive place to call home, and this new development in partnership with South Lanarkshire Council represents an important step toward achieving that vision.
“It was revealed today that Scottish homelessness is at its highest in 10 years and we are proud to be part of the solution which is not just needed but completely essential.
“By creating high-quality, self-contained living spaces with integrated support services, we are providing a vital resource to help people on their journey from homelessness to independent living and breaking the cycle of homelessness.
“We have seen first-hand from our Edinburgh Village the huge impact these make on those living in them, and we’re excited to build on this success and help make lasting change in the fight to end homelessness in Scotland.
“A massive thank you to all our partners and supporters for their help in making this happen.”
Construction of the village is due to begin in early 2025, with completion aimed for the summer.
At the end of their stay at the village, residents will be supported in transitioning to permanent accommodation and employment.
The charity has a proven track record of success with similar projects, including its Edinburgh Village which has helped more than 100 residents, many of whom have gone on to secure employment and move into their own permanent homes.