The London-based practice plans to replace a series of run-down maisonettes with a new 'Georgian-style square'.
The project forms part of the Housing Market Renewal Initiative, otherwise known as Pathfinder, which aims to ease low housing demand in the North through widespread demolition of existing homes.
The Pathfinder initiatives have faced significant local opposition from residents who argue that the demolition policy is wholly unnecessary.
The £6.5 million PTE 'mixed tenure' development of 60 units, in the Dingle area of Liverpool, will feature private homes alongside shared-ownership and rented housing.
The scheme is the first of several housing projects in the NewHeartlands City Centre South, one of the original Pathfinders, to win approval.
PTE's project architect, Mark Bennett, said the scheme would make a significant difference to the area. 'The proposed scheme is in an area that has traditionally been denied this type of high-quality project.
'Our response is an ambitious and well-resolved proposal that meets, or exceeds, all the standards required for this type of project. More importantly, it will be a scheme with a genuine sense of place.'